The International Monetary Fund said that Singapore’s “near-term outlook is clouded by an extraordinary degree of uncertainty.”
“Growth is expected to slow significantly in 2012, driven down by softening external demand and global financial volatility. Against the backdrop of a weaker external and domestic outlook, headline inflation is also expected to ease sharply in 2012,” the IMF said in a statement released today in Washington.
The statement added: “Executive Directors commended the authorities for proactive macroeconomic and financial policies, which have underpinned a strong rebound in activity. Directors noted that Singapore’s economic growth is likely to slow in the near term amidst an unsettled global environment, and that significant downside risks weigh on the outlook. Nevertheless, they agreed that Singapore has sufficient policy room and tools to cushion the impact of external shocks and preserve macroeconomic stability.”