Maybank Kin
Eng Research has stated that Singapore will probably experience a “shallow
technical recession” in the third quarter due to the continuation of US-China
trade war.
The trade
war is most likely weighing on the state’s export activities, which is one of
the most important means of monetary flow for the economy. According to Maybank
Kin Eng Research, exports will see a rise of 1.3 percent this year, which is a
decrease from the previous forecast, which was 1.6 percent.
Referring
to the second quarter, the Monetary Authority of Singapore expects year-on-year
economic growth to be weaker than it was in the first quarter. Global slowdown
due to trade tension may be the cause of this decline, which may see a tumble
from the 1.2 percent low of the first quarter, according to The Business Times.
Commenting
on this, the central bank chief Ravi Menon said “the Singapore economy is in
for a rougher ride, but it is well placed. We need to be alert but there is no
need to be alarmed.”
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