IMF says Singapore has 'ample fiscal space' despite slower recovery

Despite the global economic slowdown affecting Singapore's recovery pace, the International Monetary Fund (IMF) maintains that the city-state has considerable fiscal capacity to counter any potential risks. IMF economist Lamin Leigh revealed that the FY2023 budget's stricter fiscal policy, along with targeted support for the most vulnerable, would help control inflation. However, Leigh also noted that Singapore's economic recovery momentum is expected to slow significantly this year due to weak trade-oriented sectors and external factors. Despite these challenges, the IMF economist lauded the Monetary Authority of Singapore's tight monetary policy, advising it to remain data-dependent, focused on managing inflation and facilitating a soft landing. GDP growth is projected to be 1% in 2023, lower than IMF's previous 1.5% forecast.