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Singapore braces for US-China trade war fallout with growth outlook downgrade
Is zero growth on the horizon? Singapore now fears its trade-reliant economy might flatline amid US tariffs and the trade war
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Singapore on Monday downgraded its economic growth forecast for this year, the government said, as the trade-dependent nation braced for the effects of sweeping US tariffs and the US-China trade war.
Although US President Donald Trump imposed the baseline 10 per cent tariffs on Singapore, the city state is vulnerable to a global economic slowdown caused by the much higher levies on dozens of other countries because of its heavy reliance on international trade.
The Ministry of Trade and Industry said preliminary estimates showed that the economy grew 3.8 per cent year-on-year in the first quarter, slower than the previous quarter’s 5 per cent.
However, it said economic growth for this year was now expected to come in at zero to 2 per cent, compared with its previous forecast of 1 to 3 per cent.
The situation will continue to evolve as the US and other economies weigh their moves
“The sweeping tariffs introduced by the US, and the ongoing trade war between the US and China, are expected to weigh significantly on global trade and global economic growth,” the ministry said.
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