Singapore will probably grow 3.8% this year and expand 3% in the next, according to a Bloomberg survey in early June. The government, in May, said that the city-state’s growth will come in at the lower end of its expected 3% to 5% range this year. That same month, Prime Minister Lee Hsien Loong warned that the world may face a recession within the next two years.
Wong, who last month announced a $1.5 billion package to help lower-income households and some businesses, said that more stimulus could “exacerbate inflationary pressures” as Singapore’s economy was already running “slightly above potential.”
Headwinds to economic growth have grown across the world, with major central banks like the Federal Reserve embracing aggressive monetary policy tightening to rein in inflation. The World Bank and the International Monetary Fund have both cut their global growth forecasts for this year, and warned of rising recession risks and persistent inflation.
