Singapore’s economy faces a challenging medium-term outlook shaped by trade tensions, a softening business cycle, and geopolitical uncertainty.
Corporate profitability has weakened, and investment growth remains sluggish, though the economy is not in recession and balance sheets are robust. Monetary policy is accommodative, with further easing likely amid low inflation.
While trade risks are largely indirect rather than direct due to Singapore’s diversified export base and low dependence on US markets, global demand weakness is a drag on growth.
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