In particular, the growth outlook of the US has deteriorated as rising import costs are likely to weaken consumption. China’s growth outlook has also softened as its export growth is expected to stall amidst the trade war with the US, says MTI.
The government has downgraded Singapore's GDP growth forecast this year from 1.0% to 3.0% to 0% to 2.0%, given the escalating trade war and therefore growing downside risks.
"The sweeping tariffs introduced by the US, and the ongoing trade war between the US and China, are expected to weigh significantly on global trade and global economic growth," says the Ministry of Trade and Industry (MTI) on April 14.
