The city-state is expected to keep this year's GDP at the level of growth forecast by the government.
Singapore managed to eke out gross domestic product growth of 1 to 3 percent to date this year and is expected to continue to do so for the remainder of the year, according to the global KPMG outlook for the second quarter released on Monday.
The current pact of growth is in line with that forecast by the Ministry of Trade and Industry, which indicated resilience in the external environment driving developments. KPMG economists, however, are also cautiously optimistic about the city's long-term outlook.
Trade Tensions
The caution was because armed conflict and trade tensions worldwide could lead to increasingly isolationist policies that would result in «more frequent» bouts of inflation and increasingly activist monetary policies by central banks worldwide.
«Furthermore, a slower expected glide path on rate cuts by the US Federal Reserve will have a larger impact on rate decisions by developing economies,» they indicated.
Slowing Global Growth
The outlook this year looks at the economic prospects in a selection of countries and regions in 2024 and 2025. Overall, KPMG economists see global GDP growth of 2.5 percent this year, down from 2.7 percent in 2023, although they believe it will recover to 2.7 percent again next year.
