## Singapore: Staff Report for the 2014 Article IV Consultation

_IMF Staff Country Reports, October 17, 2014_

## Source details

**Canonical URL:** [Singapore: Staff Report for the 2014 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/singapore-staff-report-for-the-2014-article-iv-consultation-42393)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/singapore-staff-report-for-the-2014-article-iv-consultation-42393/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/singapore-staff-report-for-the-2014-article-iv-consultation-42393/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/singapore-staff-report-for-the-2014-article-iv-consultation-42393/bundle-manifest.json)

## Bibliographic details
- Published: October 17, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498331425.002

---

### Outlook and risks
- Following an upturn in 2013, growth is expected to moderate somewhat during 2014-2015, narrowing the positive output gap.
- The impact of recovering demand in advanced economies is likely to be offset by:
  - the ongoing real appreciation of the currency, and
  - the gradual tightening in global monetary conditions.
- Transitional costs related to the economic restructuring are expected to dampen growth in the near term.
- As a very open economy, Singapore is particularly exposed to external risks:
  - a protracted period of slower growth in advanced and emerging economies,
  - a continued buildup and eventual unwinding of excess capacity in China,
  - an abrupt surge in financial market volatility as investors reassess underlying risks,
  - geopolitical risks.

### Medium- and long-term challenges
- The authorities focus squarely on the implementation of their medium-term economic restructuring plan.
- The plan aims to boost the productivity of labor and land and could set the stage for a new era of sustainable growth.
- Productivity improvements may take some time to materialize.
- The slowing inflow of foreign workers, a key part of the reform agenda, could:
  - moderate potential growth, and
  - lower competitiveness in light of the tight labor market.
- The social safety net is being strengthened in the context of a rapidly aging population.

### Policy assessment
- Macroeconomic and financial sector policies are assessed as strong.
- Monetary policy:
  - The moderately tight monetary policy remains appropriate.
- Fiscal policy:
  - The fiscal stance is looser than would be warranted by cyclical considerations.
  - The 2014 budget focuses on noncyclical considerations, including:
    - support for companies’ efforts to raise productivity, and
    - additional social spending on healthcare for the elderly.
  - The authorities’ plan to raise social and infrastructure spending by 1-2 percent of GDP over the medium term should help reduce the large current account surplus.
- Financial sector and regulation:
  - Financial regulation and supervision is among the best globally.
  - Singapore is a frontrunner in implementing global regulatory reforms.
  - Macroprudential policies have contributed to cool the housing and car permit markets.
  - Good progress has been made in implementing key short•term FSAP recommendations.

*Source: IMF Staff Report — Singapore: Staff Report for the 2014 Article IV Consultation (October 17, 2014).*

---

## Content in this bundle

- **_cr14312**
  - [_cr14312 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14312.pdf.md){rel="alternate" type="text/markdown"}
  - [_cr14312 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14312.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/singapore-staff-report-for-the-2014-article-iv-consultation-42393_