Singapore Sends Up a Flare on the Global Outlook
An early mover against inflation is taking a break. The city-state’s economic picture is global and officials are concerned by what they see.
Alarm bells.
Photographer: Lionel Ng/BloombergIt’s getting hard to be an optimist about the world economy. China’s reopening is proving solid but unspectacular. Talk of a US recession has resurfaced with vigor. To this unsettling picture, Singapore added its own warning Friday. It’s been a run of wins lately — for the bumpy-landing camp.
The Monetary Authority of Singapore paused its tightening and gave a sobering commentary on global and domestic prospects. In a separate report, the government described a rough first quarter: Gross domestic product shrank 0.7% from the prior three months, a worse outcome than economists anticipated. Little wonder the MAS, which uses the exchange rate as its primary policy tool, was ready for a break. Inflation will end the year markedly lower.