Challenges including inflationary pressures, the ongoing war between Russia and Ukraine, as well as higher interest rates weigh down on the global economy and are likely to persist well into the second half of the year, adds Chua, who was speaking at the recent webinar “Singapore: Navigating Growth and Inflation”.
While Singapore’s economy in the first half had enjoyed a “powerful” post-pandemic boost, this tailwind is expected to dissipate in the second half of the year. “We think global headwinds will start to dominate,” warns Maybank’s co-head for macro research Chua Hak Bin.
Maybank sees Singapore’s GDP growing by just 2.8% this year, slightly below the lower end of the 3% to 4% official forecast range announced by the Ministry of Trade and Industry on Aug 11. This forecast range is also narrower and lower than the earlier 3% to 5% range as the global environment has “deteriorated”, says Chua.
