## IMF Staff Completes 2023 Article IV Mission to Singapore

_IMF News, May 17, 2023_

## Source details

**Canonical URL:** [IMF Staff Completes 2023 Article IV Mission to Singapore](https://www.imf.org/en/news/articles/2023/05/16/pr23153-singapore-imf-staff-completes-2023-article-iv-mission)

## Other formats

- [Markdown version](/en/news/articles/2023/05/16/pr23153-singapore-imf-staff-completes-2023-article-iv-mission/index.md)
- [Structured JSON version](/en/news/articles/2023/05/16/pr23153-singapore-imf-staff-completes-2023-article-iv-mission/index.json)
- [Bundle manifest](/en/news/articles/2023/05/16/pr23153-singapore-imf-staff-completes-2023-article-iv-mission/bundle-manifest.json)

## Bibliographic details
- Published: May 17, 2023

---

### Mission timing and procedural notes
- An International Monetary Fund (IMF) team, led by Mr. Lamin Leigh, conducted discussions for the 2023 Article IV Consultation with Singapore during May 8-May 17, 2023.
- Press Release No. 23/153
- Date of end-of-mission press release: May 17, 2023.
- End-of-Mission press releases convey preliminary findings after a visit; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Staff will prepare a report, subject to management approval, for the IMF's Executive Board.

### Growth outlook and recent performance
- Real GDP growth reached 3.6 percent in 2022.
- GDP is projected to grow by 1 percent in 2023, reflecting weakening external demand due to a slowdown in major trading partners and slowing domestic demand following the post-reopening recovery.
- Singapore’s recovery is described as “one of the strongest among advanced economies,” with overall activity at end-2021 having surpassed pre-COVID levels, but recovery momentum has been moderating.
- Trade-oriented sectors are performing weakly amid external headwinds.

### Inflation and monetary policy
- Headline inflation is described as “still elevated” but has “started moderating.”
- Headline inflation is projected to slightly moderate to 5.5 percent in 2023, reflecting the one-off effect of the GST rate hike, tight labor market, and policies to raise wages of lower wage workers.
- The Monetary Authority of Singapore (MAS)’s tight monetary policy stance is welcomed.
- Monetary policy recommendations:
  - Maintain data-dependent decisions and a tightening bias to rein in inflation while facilitating a soft landing.
  - The tight monetary policy stance may need to remain for longer or be further tightened, should inflation surprises re-emerge, to help prevent inflationary pressures from becoming entrenched.

### Labor market dynamics
- The labor market has been tight across sectors.
- Bottlenecks have started easing as foreign workers return.
- Tight labor market conditions are translating into sticky service price inflation.

### Fiscal stance and buffers
- The FY2023 tighter fiscal stance will help moderate inflationary pressures.
- The IMF notes Singapore has ample fiscal space and fiscal buffers that can be deployed judiciously should downside risks materialize.
- Going forward, Singapore is described as “well-positioned to absorb rising fiscal pressures to address medium- and long-term challenges, including those arising from the rapidly ageing population and from climate-change risks.”

### Financial sector resilience and risks
- The financial sector remains sound, preserving Singapore’s role as an important regional financial hub.
- Risks highlighted for close monitoring:
  - Liquidity risks in banks and non-bank financial institutions.
  - Interest rate risk for highly leveraged entities.
  - Heightened global economic and financial uncertainties.
- Macroprudential actions:
  - MAS’ tighter macroprudential stance to rein in buoyant residential property markets is noted as supportive of preserving financial sector resilience.

### Structural priorities and policy support
- The IMF team welcomes the authorities’ comprehensive efforts to transition towards a smarter, greener, more inclusive, and more resilient economy.
- Ongoing plans welcomed by the IMF team include:
  - Accelerating digital adoption and innovation, particularly in the financial sector.
  - Climate-resilient infrastructure investment and climate mitigation goals.
  - Resource reallocation towards high-growth sectors and more sustainable activities to support medium-term economic growth.

*IMF Staff Completes 2023 Article IV Mission to Singapore — Press Release No. 23/153, May 17, 2023.*

---


## References

- [Singapore and the IMF](http://www.imf.org/external/country/SGP/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2023/05/16/pr23153-singapore-imf-staff-completes-2023-article-iv-mission_