SINGAPORE, May 17 (Xinhua) -- A team from the International Monetary Fund (IMF) said the recovery in manufacturing, tourism, and consumer-facing services would fuel Singapore's GDP growth to 2.1 percent in 2024 from 1.1 percent last year.
Masahiro Nozaki, who led the team in discussions with Singapore from May 7 to May 16, projected the headline and core inflation in Singapore to moderate to 3 percent this year, with the latter expected to stabilize at around 2 percent by 2025.
The inflation stickiness would continue due to volatility in global energy and food prices, and growing labor costs, Nozaki said.
Accordingly, he called on the authority to maintain tight monetary policy until inflationary pressures recede and to adjust the policy to stabilize prices once the envisaged disinflation is firmly in sight.
He also noted that Singapore's targeted support to vulnerable households and firms is appropriate and expected to complement the tight monetary policy stance.
With strong public finance and balanced budget rule, Singapore can address future downside risks and medium to long-run spending needs arising from the rapidly aging population, the need to raise productivity, and tackle climate change, the economist said. ■
