August 11, 2022, 03.03 PM

SINGAPORE, KOMPAS.com - Singapore on Thursday, Aug. 11, narrowed its economic growth forecast this year after the economy contracted in the second quarter compared to the previous three months due to rising inflation and tighter monetary policies, the government said.

Moves by central banks worldwide to tighten borrowing costs to deal with rocketing prices have weighed down on global demand for Singapore’s exports, with the government painting a grim picture for the rest of the year.

Economists often see the performance of the city state’s open, trade-driven economy as a barometer for global trading activity.

Singapore’s economy is now projected to expand by 3.0 to 4.0 percent this year, trimmed from a 3.0 to 5.0 forecast earlier, the trade ministry said in a statement.

Also readSingapore Executes Fifth Drug Trafficker Since March

The economy grew by 4.4 percent year-on-year in the second quarter to June, faster than the 3.8 percent growth recorded in the previous quarter, it said.

But compared to the previous three months, the economy contracted by 0.2 percent, reversing the 0.8 percent expansion in the first quarter.

“Since May, the global economic environment has deteriorated further,” the ministry said.

“Stronger than expected inflationary pressures and the more aggressive tightening of monetary policy in response are expected to weigh on growth in major advanced economies such as the US and Eurozone.”

China, a key market for global exports, “continues to grapple with a deepening property market downturn and recurring domestic Covid-19 outbreaks”, it said.

Page:
Source AFP


Latest Video

Recommendation
Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Report
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

News
September 30, 2022, 07.14 PM

Indonesia Approves First Homegrown Covid-19 Vaccine

News
September 29, 2022, 09.40 PM

Indonesia, Singapore to Intensify Marine Patrols

News
September 26, 2022, 06.21 PM

Six People Killed in Philippine Typhoon

Close Ads