Stagflation and why it occurs

Singapore

THE global economy faces the risk of recession or stagflation if the Russia-led war in Ukraine is prolonged, and Singapore could be adversely affected in these scenarios, despite its limited links to Russia and Ukraine, warned Finance Minister Lawrence Wong at an event on Tuesday (Mar 22).

For now, Singapore's baseline assumption is for the economy to grow by 3-5 per cent in 2022, although President Halimah Yacob noted in a speech this week that projection "may be affected", and that the Republic must be prepared for "secondary and tertiary effects".