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IMF lowers Singapore’s 2019 growth forecast to 2 per cent

Bloomberg New York | Updated on July 16, 2019 Published on July 16, 2019

The International Monetary Fund sees Singapore’s economic growth slowing to 2 per cent in 2019 as global trade tensions hurt external demand.

Growth will probably stabilize in the medium term around 2.5 per cent, the Washington-based lender said in statement. In May, the IMF predicted 2.3 per cent growth for Singapore in 2019, down from 3.2 per cent in 2018. IMF directors supported broadly neutral monetary policy stance and recommended it remain data-dependent If downside risks materialise, fiscal policy should be the first line of defence, IMF says

Singapore’s financial system is resilient, underpinned by a strong regulatory and supervisory framework, it said. The IMF added that liquidity stress tests reveal vulnerability in U.S. dollar liquidity and IMF directors encouraged giving priority to bolstering banks foreign exchange liquidity

The IMF commended Singapore’s use of macro-prudential and other measures in the property market. It suggested eliminating residency-based differentiation for the Additional Buyers Stamp Duty, and then phasing out the measure once systemic risks dissipate

In a separate statement, the Monetary Authority of Singapore said its reviewing the IMF’s recommendations and will take appropriate steps to strengthen financial oversight

Published on July 16, 2019
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