According to one economist, Singapore may experience as much as 0.8 percentage points being taken off its GDP growth in 2018 if a trade war does occur.
Trade friction between China and the US keeps heating up with the recent kicking in of mutually-threatened tariffs on Friday the 6th of July. Following this, the world is edging closer and closer to a trade war which will impact the economy in Singapore.
Experts however are differing in opinion as to how much it will effect the export-heavy country’s gross domestic product. Estimates of downside risk to growth this year ranged from 0.2 percentage points to 0.8 percentage points.
The 25% tariff levied by the US on Chinese products worth US$34 billion (S$46 billion) across over 800 categories is due to be put into action just after midday on Friday in China.
Following this, Beijing has recently stated that they plan to respond immediately when these measures take effect, with tariffs on the exact same value of US goods, including agricultural products and vehicles.