Singapore’s economy contracted by 0.6% in Q1 2025, indicating the risk of a technical recession. Officials warn of job losses and slower hiring due to ongoing trade tensions.
The Monetary Authority of Singapore advises against retaliatory tariffs, recommending focus on enhanced regional trade, especially in digital sectors. Growth forecasts for 2025 are set between 0.0% and 2.0%.
Protectionism and high tariffs negatively impact consumer welfare and resource allocation. The US has imposed a 10% baseline tariff on Singapore, heightening trade tensions.
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