Trade war, mature cycles could be a drag in next few quarters

Singapore

SINGAPORE'S economy has yet to take a hit from the ongoing US-China trade war, but it could soon bear the brunt of it in the latter half of 2018 and beyond, the Monetary Authority of Singapore (MAS) said in its half-yearly macroeconomic review on Friday.

Trade tensions, coupled with the maturation of global economic and tech cycles amid tightening global financial conditions, could potentially be a drag on Singapore's growth in the next few quarters, it added. Nonetheless, the MAS still maintained that the economy is on track to expand at a "slower but still firm pace" for the rest of this year and in 2019.

Barring a materialisation of downside risks, growth is expected to come in within the upper half of the 2.5-3.5 per cent range in 2018, before moderating slightly next year. Despite the trade spat, economists noted that the central bank seemed to strike a positive note on Singapore's growth prospects, buttressing its decisio…