Singapore growth likely to be weaker than forecast: MAS

MAS expects year-on-year economic growth to be weaker in the second quarter than a decade-low 1.2 per cent achieved in the first quarter.
MAS expects year-on-year economic growth to be weaker in the second quarter than a decade-low 1.2 per cent achieved in the first quarter.PHOTO: REUTERS

Singapore's growth in the second half of 2019 is likely to be weaker than earlier envisaged if the trade impasse between the United States and China drags on and further tariff measures are imposed.

The country's three economic "engines" comprising trade, investment and local manufacturing have stalled and slowed overall growth, Monetary Authority of Singapore (MAS) managing director Ravi Menon said yesterday. Weaker growth will affect Singapore's economic forecast for this year.

This comes as Maybank Kim Eng said Singapore is headed for a shallow technical recession - two straight quarters of quarter-on-quarter contraction - in the third quarter.

Meanwhile, Mr Menon said talks have already begun with Facebook on the social media giant's planned cryptocurrency, Libra.

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A version of this article appeared in the print edition of The Straits Times on June 28, 2019, with the headline 'S'pore growth likely to be weaker than forecast: MAS'. Print Edition | Subscribe