Singapore further cut its annual growth forecast on Tuesday as the escalating US-China trade war hammers exports, in another ominous sign for Asia's trade-reliant economies. The government said it expected growth of 0.0-1.0 percent this year, sharply down from the 1.5-2.5 percent previously estimated, marking the second downward revision this year. The economy expanded 3.2 percent in 2018.
The export hub is highly sensitive to external shocks and has traditionally been one of the first places in Asia to be hit during global downturns - with ripples then spreading out across the rest of the region. Shipments from the city-state have plunged while its economy suffered a surprise quarter-on-quarter contraction in the three months to June, as Beijing's row with Washington hit the complex global trading system. "The growth prospects of key emerging markets and developing economies... and China have worsened, partly due to the escalation of the US-China trade conflict in recent months," the trade ministry said.