Singapore's government stands ready to stimulate the economy, Prime Minister Lee Hsien Loong said on Thursday, after some of the worst economic data in years prompted warnings that a recession may be looming.
In an annual speech ahead of Friday's national day, Lee also said the city-state - which is seen as a bellwether for global growth but also has one of the world's fastest ageing societies - would raise the retirement age.
"This year our economy has slowed down. Global demand and international trade have weakened," Lee said.
"This has affected our manufacturing sector and trade related services. In particular, we are feeling the worldwide cyclical downswing for electronics," he added.
"Should it become necessary to stimulate the economy, we will do so," Lee said, without giving further details.
Data next week is expected to confirm Singapore experienced its slowest pace of expansion in a decade in the second quarter on a year-on-year basis.
It is also expected to show a near 3% quarter-on-quarter contraction, reaffirming the risk of a possible recession later this year.
Singapore's central bank is widely expected to ease policy when it meets for the second of its semi-annual policy announcements in October, if not in an off-cycle move beforehand.
Comments
Comments are closed.