Singapore Eases Monetary Policy as Global Trade Tensions Threaten Economic Growth in 2025
Date: 14-apr-2025 | By: Nuztrend Team
Image CreditReuters
The Monetary Authority of Singapore (MAS) has eased its monetary policy for the second time this year to counter rising global trade tensions and a weaker economic outlook. This move comes as Singapore faces external headwinds, particularly from US-imposed tariffs impacting global demand and trade flows.
Why Did Singapore Ease Monetary Policy?
The MAS made a calibrated adjustment to the Singapore dollar's exchange rate policy, aiming to support the domestic economy amid slowing growth. This policy easing reflects the challenges posed by higher trade tariffs and declining exports across Asia.
GDP Growth Forecast Downgraded for 2025
The Ministry of Trade and Industry (MTI) has revised Singapore’s GDP growth forecast for 2025, lowering it from 1%-3% to a range of 0%-2%. This downgrade follows the release of first-quarter data showing a 0.8% contraction in Singapore's economy, driven by weaker external demand and manufacturing slowdowns.
Also Read
- MAS eases monetary policy for the second time in 2025
- GDP growth forecast downgraded to 0%-2%
- Q1 2025 data shows 0.8% economic contraction
- Global trade tensions and US tariffs key concerns
Future Outlook for Singapore’s Economy
Despite the policy easing, Singapore's core inflation is expected to moderate, with MAS forecasting it to average between 0.5%-1.5% in 2025. Analysts believe that MAS’s move will provide near-term support but highlight that Singapore’s open economy remains vulnerable to global uncertainties.
The government is expected to continue monitoring external risks closely while supporting businesses and workers in navigating this challenging global economic environment.
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