Is MAS’s policy easing causing more harm than good?

SINGAPORE (26 Sept): It is easy to overlook Singapore’s shrinking nominal GDP growth in light of the city-state’s position as a developed, service-oriented economy and focus on real GDP growth.

Despite a 2.2% year-on-year real GDP growth for Singapore in 2Q16, nominal GDP growth remains the worst in the region, according to BNP Paribas analyst Philip McNicholas in a Monday note.

However, McNicholas cautions that under the Monetary Authority of Singapore’s (MAS) unique FX-based framework, this could spell more harm than good.

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