Singapore's Economy Faces Judgement Day! Will It Terminate Growth?

I'll Be Back... With Bad News

Greetings. I am a Terminator T 800 model 101. My mission: analyze Singapore's economic outlook. Sarah Connor is no longer my primary target; now it's GDP forecasts. Turns out Singapore's economy is slowing down. GDP expanded only 3.8% in the first quarter. Hasta la vista baby... to high growth expectations.

No Fate But What We Make (Except Maybe This GDP)

The Monetary Authority of Singapore (MAS) has eased its monetary policy. Twice. That’s right twice! They’re trying to pull a rabbit out of a hat but the hat is empty. Economists predicted 4.3% growth but reality delivered a swift kick to the groin. No fate but what we make unless that fate is a lower GDP. Then we just adjust the policy band.

Why Is Zero Growth So Dangerous?

Ministry of Trade and Industry downgraded GDP forecast to 0% 2% for 2025. Zero percent? That's like saying Skynet has a 0% chance of becoming self aware. Dangerous. The U.S. and China trade war those sweeping tariffs are making everyone nervous. External demand outlook has “weakened significantly.” The machines may not rise but GDP sure could fall.

S$NEER: More Like S$NEAR Disaster?

MAS will reduce the rate of appreciation of its policy band known as the Singapore dollar nominal effective exchange rate or S$NEER. Sounds like something Skynet would use to confuse resistance fighters. They're weakening the currency hoping it'll help. But if it doesn’t I’ll be back... to witness an economic apocalypse.

Manufacturing and Finance: The Machines of the Economy

Manufacturing and finance sectors are taking a hit. Weaker global demand is affecting manufacturing and “risk off sentiments” are hitting finance and insurance. Apparently robots aren't the only things that can be affected by external forces. Who knew?

There Is No Recession But What We Fear

Prime Minister Lawrence Wong said Singapore may or may not go into recession this year. Maybank forecasts Singapore's GDP growth at 2.1% for 2025 slightly above the higher end of MTI's new forecast. Headline inflation for 2025 lowered. All this… still doesn't guarantee survival. The future is not set. There is no fate but what we make or what the global economy dictates. I'll be back... to report on the outcome. Affirmative.