Singapore Macro Chartbook: Delicate balancing of growth and inflation
- Our GDP growth forecast for 2022/23 remains unchanged at 3.5% and 3.0%
- Manufacturing is slowing but services sector will pick up some of the slack
- Inflation is peaking but will remain elevated due to global price pressure and upcoming GST hike
- We have raised our inflation forecasts for 2022/23 to 5.7% and 4.5% respectively
- The Monetary Authority of Singapore (MAS) will tighten monetary policy again in Oct22
Inflation will remain the key risk in 2022/23 amid elevated global price pressure. Although recent data is suggesting a peaking in global inflationary pressure, headline inflation reading will continue to stay high. With inflation peaking and the risk on growth becoming more real, the MAS is near the end of its tightening cycle, as it delicately balance the risks between inflation and growth.