Business

Singapore cuts growth outlook as trade war bites

Wednesday, August 14, 2019

Print this page Email A Friend!


SINGAPORE (AFP) — Singapore further cut its annual growth forecast on Tuesday as the escalating US-China trade war hammers exports, in another ominous sign for Asia's trade-reliant economies.

The government said it expected growth of 0.0-1.0 per cent this year, sharply down from the 1.5-2.5 per cent previously estimated, marking the second downward revision this year. The economy expanded 3.2 per cent in 2018.

The export hub is highly sensitive to external shocks and has traditionally been one of the first places in Asia to be hit during global downturns with ripples then spreading out across the rest of the region.

Shipments from the city state have plunged while its economy suffered a surprise quarter-on-quarter contraction in the three months to June, as Beijing's row with Washington hit the complex global trading system.

“The growth prospects of key emerging markets and developing economies... and China have worsened, partly due to the escalation of the US-China trade conflict in recent months,” the trade ministry said.

“Uncertainties and downside risks in the global economy have increased since three months ago,” it warned, citing US President Donald Trump's announcement this month he would impose tariffs on an additional US$300 billion of imports from China.

“This could severely dent global business and global confidence, with adverse implications on global trade and global economic growth.”

Singapore has been particularly hard hit by falling demand for electronic goods, a key export that is vital to the manufacturing sector.

DBS Bank said the downgraded forecast has strengthened the case for Singapore to ease monetary policy during a meeting in October in a bid to stimulate the economy.

With little sign that US-China trade row will be resolved soon, exports have been slipping across Asia and governments have slashed economic growth forecasts.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper ´┐Ż email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT