Singapore Says Growth May Fall Below 1%; MAS Boosts Reserves

Singapore’s growth may fall below 1 percent should the U.S. and Chinese economies slump and the European crisis worsen significantly, the central bank said as it bolstered reserves to counter market turmoil.

The island’s current gross domestic product growth forecast of 1 percent to 3 percent is based on assumptions that there is no recession in the U.S., no significant escalation of the euro zone crisis and no hard landing in China, Monetary Authority of Singapore Managing Director Ravi Menon said today.

“If one or more of these assumptions do not pan out, Singapore’s GDP growth could dip below 1 percent this year,” Menon said in a briefing in the city state as the central bank released its annual report. “Growth momentum is clearly slowing.”

via Businessweek

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