To those betting on a strong Asian come back from the Covid-19 period, Singapore has a sobering message: “Think once again. ”
On August 11, the city-state’s Ministry associated with Trade and Business narrowed its full-year growth forecast to 3-4%. It also revised downward growth in the second quarter to 4. 4% through an initial 4. 8% reading.
Singapore matters because of its role as Asia-Pacific region weathervane. Its open and trade-reliant economy is often the vanguard of zigs and zags within global demand. Whenever container-ship parking around Singapore gets crowded, manufacturers have reason to shudder.
At the moment, Asia’s weathervane is signaling fresh headwinds coming its way. Some are usually coming from Washington, where the US Federal Reserve’s interest-rate hike routine is accelerating. Others are emanating from Europe, where growth is slowing under the weight of high energy costs.