Intellasia East Asia News – World faces growth, inflation trade-off, Singapore’s Wong says

The world is facing a sharper trade-off between economic growth and inflation, with price pressures almost certain to last longer, Singapore Finance minister Lawrence Wong said in a speech in Washington.

Wong’s comments on inflation came in his first speech on the global stage since being named the leader of Singapore’s so-called fourth generation team that paves the way for him to become the country’s next prime minister.

Addressing the Peterson Institute for International Economics on Monday night, Wong said higher inflation has been induced by the pandemic and the war in Ukraine. He also said that the trend toward globalisation is ebbing, compounding the challenges to growth.

Singapore has enjoyed relatively brighter growth prospects than neighbouring countries in Southeast Asia, helped particularly by the return of demand after recent loosening of pandemic curbs. That’s allowed the city-state’s monetary authority to focus on combating inflation, by tightening policy last week for the third time since October.

“Clearly there are no easy answers,” Wong said. “Fiscal policy therefore has to play an important role. Part of this is about being able to respond more quickly with immediate stimulus when needed,” he said.

While it’s not possible for any finance minister to sustain extraordinary levels of spending over extended durations, Wong said fiscal policy has to be re-purposed in order to build “inclusive and sustainable growth” by investing in eldercare, healthcare, early childhood development or infrastructure, as well as education.

In the dialogue at the Peterson Institute, he also said that the US and China will generate better outcomes for the world by continuing engagement and finding ways to work together on issues that affect everyone. This would be better than trying to contain China’s rise, which will be difficult, ineffective and ultimately destabilising for all, including the US, he said.

https://sg.finance.yahoo.com/news/world-faces-growth-inflation-trade-off-singapores-wong-says-020806806.html

 

Category: Singapore


Print This Post

Source link

Latest

Newspaper headlines: PM ‘hit by backlash’ and airlines axe more flights

Several of Saturday's papers lead with the fallout from...

2nd Tourist In 3 Days Is Gored By Bison At Yellowstone

It was the third attack in less than a...

AFL 2022 round 16 LIVE updates: Swans make strong start against Dons in Parker’s 250th

Swans chief executive Tom Harley has ruled out any...

Horoscopes for 02 July 2022 – Saturday

Are you prepared for the day? Do you know...

Indonesia-Uni Emirat Arab Sepakati Perjanjian Kerja Sama IUAE-CEPA – Tribunnews.com

Laporan Wartawan Tribunnews, Taufik Ismail TRIBUNNEWS.COM, JAKARTA - Presiden Joko Widodo (Jokowi) dan Presiden Persatuan Emirat Arab (PEA) Sheikh Mohamed bin Zayed bin Sultan Al...

Intellasia East Asia News – Indonesia leader targets food crisis during Russia-Ukraine peace mission

<!-- --> Indonesia’s president ended a trip to Ukraine and Russia saying he hoped for progressreintegrating global food and fertiliser supply lines disrupted...

Intellasia East Asia News – 950,000 HDB households to get second tranche of GST vouchers in July

<!-- --> About 950,000 Singaporean households living in Housing Board (HDB) flats will receive their second quarterly Goods and Services Tax Voucher (GSTV)...