Singapore central bank (MAS) survey shows stronger 2025 growth, policy seen on hold

The Monetary Authority of Singapore (MAS) has reported an upgrade in the economic growth outlook for 2025, now forecasted at 4.1% compared to 2.4% previously. This upgrade follows unexpected strength in economic activity, particularly indicated by strong GDP growth in the third quarter. The recovery has been supported by trade and technology. The forecasted growth for Q4 stands at 3.6% year-on-year, further solidifying the broad recovery. However, medium-term risks remain, particularly geopolitical tensions and concerns regarding an unwinding AI investment cycle. The MAS is expected to keep monetary policy unchanged during its January review, with inflation remaining subdued. Overall, Singapore's economy shows resurgent momentum, allowing policymakers to maintain a patient stance as inflation remains low.