Singapore’s Minister for Trade and Industry Chan Chun Sing believes that the city-state would not be entering a recession for now, reported CNBC.
Often seen as a bellwether for global growth, Singapore’s economy avoided a technical recession this year after expanding by 0.6% during the third quarter from the previous quarter. On an year-on-year basis, the city-state’s economy climbed 0.1%.
“At this point in time, I don’t think we are looking at a recession,” he said at the Singapore International Energy Week conference.
“But we are of course cognisant of the larger forces moving in the world. But yet at the same time, we are quietly confident.”
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Singapore has one of the world’s highest trade-to-GDP ratios, making its economy highly sensitive to global business cycles and trade flows.
In the next 10 to 15 years, the “greatest challenge” would be whether the world moves into a “more fragmented global trading and production system” or a more integrated course, said Chan.
China and the US have been entangled in a trade dispute for over a year, with the two imposing tariffs on each other’s goods – upending supply chains and affecting manufacturing activity across various countries.
Over in Singapore, both services-producing and goods-producing industries have been affected.
With the two economic super powers unable to resolve key sticking points, the trade dispute moved to the tech space, with Chinese companies blacklisted by the US, while China reportedly plans to wean off American technology.
“If the world bifurcates or fragments … that would bring in a very different growth trajectory for the entire world,” said Chan.
But despite the disruptions, he believes the city-state can “play to our strengths”, citing Singapore’s pro-business environment, intellectual property protection and long-term stability.
“I think those are the factors that we offer investors for their long term investment,” he added.
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Kyle Leung, Digital Content Manager at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com