Economic uncertainties have increased since six months ago, and the negative spillover created by trade friction among countries are likely to have a more obvious impact from the later part of this year going forward, says Singapore’s central bank.
Even though trade frictions have had a “limited impact” on Singapore so far, it may no longer be the case, the Monetary Authority of Singapore said in its bi-annual Macroeconomic Review on Friday.
“The economic outlook has become more uncertain since the last review. In particular, United States (US) trade frictions with China have risen in scale and intensity over the past six months. With the imposition of the first round of tariffs in July 2018 by both US and China, some risks have begun to materialise,” the MAS noted.
The world’s two largest economies have been slapping tariffs on each other in an ongoing trade fight, with the US imposing about US$250 billion of duties on Chinese goods and China retaliating with US$110 billion on US products.