The Minister for Trade and Industry told Parliament on Monday (July 4) that Singapore does not expect the country’s economy to fall into recession or stagnation next year.
The current growth forecast for 2022 predicts that Singapore’s economy will grow by only 3% to 5% next year.
So far this year, local economic activity has remained “elastic” despite rising inflation.
“Growth is expected to gradually improve,” but “don’t expect a recession or stagnation,” the policymaker said.
Stagflation is a combination of economic stagnation and inflation. It refers to a situation where the economy faces two challenges: slow economic growth and unemployment amid rising inflation.
He noted that “significant” risks remain in the global economy, such as the escalating conflict between Russia and Ukraine. More severe global supply disruptions tighter monetary policy than expected in advanced economies and COVID-19 Great Outbreak.