It adds that further downward pressure on growth may happen as businesses and households are likely to defer their investments and discretionary spending amid heightened policy uncertainty and the broader tightening of financial conditions, which will lead to further downward pressure on growth.
The escalation of trade frictions, including the higher tariffs from the US and retaliatory measures by some of its trade partners, will have "serious ramifications" for the global economy, the Monetary Authority of Singapore (MAS) warns in its macroeconomic review for April 2025.
"Economies that levy duties on imports will likely experience an increase in costs, which will in turn weigh on business and consumer spending. Meanwhile, exporting countries which have been hit by the US tariffs will experience a negative externally induced shock on export production," the central bank notes in the review released April 28.
