Singapore: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Singapore

The 2023 Article IV Consultation highlights that Singapore’s post-pandemic recovery is nearly complete. Strong economic fundamentals and the authorities’ decisive policy responses, including an unprecedented policy stimulus, supported a rapid recovery from the coronavirus disease 2019 shock. Macro policies are appropriately tight to moderate price pressures in 2023. The Monetary Authority of Singapore tightened monetary policy under its unique framework five consecutive times since October 2021, and has paused so far in 2023, given negative imported inflation and projected below-trend growth this year. Should downside risks materialize, Singapore can continue to deploy its ample fiscal buffers to cushion the economic impact, with targeted fiscal support continuing to be the first line of defense. In a downside scenario where high inflation is combined with severe strains in financial markets, the pace of tightening would need to be adjusted to avoid a broadening of financial stability concerns.