First signs of slight easing in growth momentum are at hand

BOTH Singapore investment firm Temasek Holdings and sovereign wealth fund GIC sounded a cautious note in their outlook when they released their financial results last week. And by no means are they the only ones. Investors worldwide are reassessing the risks facing the global economy.

Despite notching a record-breaking S$308 billion portfolio under its belt, Temasek took pains to stress that growth is slowing. The global economy has been running above trend, it said. The firm expects growth to moderate while also seeing the probability of downside risks increasing.

Together with medium-term risks such as rising trade and geopolitical tensions as well as monetary and financial stresses in some key economies, these could increase volatility and even dampen global growth potential, Temasek added.