Singapore gives economic optimists some help.

Oct 14
Singapore claims that the world economy is only halfway full. The most recent forecast from the central bank falls short of some of the pessimism that has pervaded communications this year. Global expansion will continue to fight if this commerce and financial center is correct.
The city-state's leaders take care not to declare victory because this is far from a win-win scenario. They sound less dire than recent projections made by the OECD, the IMF, and European officials. "The risk of a sharp downturn driven by financial vulnerabilities has decreased compared to the previous year," the Monetary Authority of Singapore stated on Friday.

While there is still potential for the global economy to falter, China is still having difficulties, and Asia is feeling the effects of its subpar recovery. Consumer price inflation narrowly escaped declining once more, and economists anticipate this week's data will indicate the economy slowed down once more in the third quarter.

The dangers are only heightened by the Middle East conflict. The IMF and World Bank annual meetings in Morocco this week gave some credence to scenarios in which greater conflict slows economic growth.

Singapore approached 2023 with worries about a severe recession after making a remarkable recovery from the pandemic. The island's economy shrank in the first quarter, and its officials issued a dire warning. Except for China, there was excessive inflation and interest rates were rapidly increasing.

Long before the Federal Reserve and the European Central Bank, Singapore itself was among the first to tighten policy, yet the anticipated recession never materialized.

Singapore's domestic economy appears to be in good shape. Much faster than expected and up from 0.1% in the previous quarter, the gross domestic product increased by 1% between July and September. From a peak of 5.5% in January, core inflation decreased to 3.4% in August.

It is noteworthy that a small nation strongly entwined with world trade patterns has escaped a recession. Optimists may find some solace in Singapore's assessment of the situation.

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