Singapore ‘cannot rule out’ 2025 recession due to US tariffs — minister
Singapore’s Jewel Changi Airport (Photo by JMS)
SINGAPORE — Singapore “cannot rule out” a recession this year because of the global uncertainty caused by US President Donald Trump’s tariffs, its trade minister said Wednesday.
“Given potential downside risks, we cannot rule out the possibility of a recession this year,” Deputy Prime Minister and Trade Minister Gan Kim Yong said at a news conference.
On Monday, the trade ministry downgraded Singapore’s economic growth forecast this year to between zero and 2.0 percent, from its previous forecast of 1 percent to 3 percent.
READ: Singapore downgrades growth forecast amid US-China trade war
The effects of the sweeping US tariffs worldwide “have caused significant uncertainty and downside risks in the global economy, and we must be prepared for more shocks and challenges ahead,” Gan said.
He was speaking at a news conference of a government task force formed to help the trade-dependent nation cope with the effects of the tariffs.
Although Trump imposed the baseline 10 percent tariffs on Singapore, the city-state is vulnerable to a global economic slowdown caused by the much higher levies on dozens of other countries because of its heavy reliance on international trade.
