Singapore growth, inflation forecasts cut amid geopolitical jitters
A new central bank survey shows economists have slashed Singapore’s median growth forecast to 1.7 per cent
Geopolitical tensions were seen as the biggest downside risks for the economy, while a milder-than-expected easing of trade tensions was the most cited upside risk, the responses from 20 economists for the June quarter survey found.
Almost three in five respondents expect the central bank to further ease monetary policy settings at a review next month, the survey found. The authority, which is Singapore’s central bank, loosened monetary policy in January and April on the back of expected slower inflation and growth this year.
The median forecasts for headline inflation and core inflation for 2025 were lowered to 0.9 per cent and 0.8 per cent respectively, the survey showed.
At its April policy review, the monetary authority lowered its forecast for core inflation to 0.5 per cent to 1.5 per cent in 2025.
In March, the annual core inflation rate was 0.5 per cent, the lowest rate in more than three years. The survey was sent out to respondents on May 22, the same day final first-quarter GDP data was released.