SINGAPORE (Reuters) – Singapore will feel the impact of increasing global tensions with economic growth set to slow this year, Prime Minister Lawrence Wong said in his budget speech in parliament on Tuesday.
Wong, who is also finance minister, said the United States and China were locked in a contest for supremacy, and were prepared to take more assertive actions to advance their interests.
“All these pressures will reshape the global economy and dampen prospects for global growth. As a small and open economy, we will feel the impact,” Wong said.
Singapore’s GDP accelerated to 4.4% in 2024 from a revised 1.8% in 2023, but the trade ministry expects growth in 2025 to moderate to 1.0% to 3.0%, a forecast Wong reiterated on Tuesday.
The budget is expected to focus on cost of living and employment issues as Singapore heads towards an election buoyed by strong economic growth and low inflation while facing uncertainties over U.S. trade policies.
(Reporting by Xinghui Kok, Rae Wee and Fanny Potkin; additional reporting by Bing Hong Lok; Writing by John Mai; Editing by Martin Petty)
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