The International Monetary Fund (IMF) said Friday that Singapore's near-term economic outlook is clouded by extraordinary degree of uncertainty.
The Washington-based lender said in a statement that economic growth in Singapore "is expected to slow significantly" this year, driven down by declining external demand and global financial volatility.
But it also noted that Singapore still has sufficient policy room and tools to cushion the impact of external shocks and preserve macroeconomic stability.
"With price pressures expected to ease and inflation expectations well anchored, there is scope for cautiously easing monetary policy further in the event of a sharper than expected deterioration of the growth outlook," the IMF said.
It added that the Singaporean authorities could also use available fiscal space to boost aggregate demand, support employment, and protect low-income families./.