Singapore to avoid economic contraction this year, PM says

Singapore's Prime Minister Lee Hsien Loong.
Singapore's Prime Minister Lee Hsien Loong. (KENZO TRIBOUILLARD/AFP via Getty Images)

By Ann Koh

(Bloomberg) — Singapore should avoid an outright contraction in its economy this year, despite being battered by the effects of a global slowdown, the city state’s prime minister said.

While the city-state’s economic growth will slow, inflation may moderate in the second half of this year, Prime Minister Lee Hsien Loong said in an e-mailed speech. The Monetary Authority of Singapore said earlier this month that the nation’s economy will expand 0.5%-2.5% this year, even as it flagged the possibility of a recession in the US.

“There is a risk of recessions in Western countries as central banks continue raising interest rates to dampen inflation,” said Lee. “We must respond to these broader trends by adapting to them, while doing all we can to buffer those adversely affected.”

Lee said retrenchment rates have remained “manageable” as the government rolls out policies to reskill its population in the expectation that emerging green industries and technologies like artificial intelligence will disrupt global economies.

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