Global trade: it's not about just the economy any more but politics too

WITH growth forecast at 1-3 per cent for 2017, Singapore's economic outlook remains as sluggish and subdued as it has been this year. But there are also on the horizon additional concerns that demand different response measures.

China's slowing growth, for one, remains a key downside risk. And while the US economy is expected to pick up pace, at least in the short term next year, uncertainty around the policy stances of the new Trump administration could unleash volatility on the financial markets. The impact on the oil market, meanwhile, is yet unclear. What's apparent enough, though, is that socio-political risks around the globe have intensified.

Both the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore have pointed to the growing backlash against anti-globalisation. "Political risks and uncertainties have risen, and could in turn lead to greater economic uncertainties," said MTI, while the MAS said that "financial surveillance increasingly needs to take into account possible shocks from and repercussions of political events".