Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025

Singapore’s monetary policy remains firmly on track, according to central bank chief economist Edward Robinson, who emphasized that current settings continue to support stable, sustainable economic growth. Speaking at a media briefing following the release of the city-state’s third-quarter economic data, Robinson noted that the Monetary Authority of Singapore (MAS) expects the output gap to stay positive through 2025, before easing to around zero next year. This outlook signals that the economy is operating near its potential, reducing the need for major policy shifts in the near term.

Robinson reaffirmed that MAS’s existing policy stance—focused on managing the Singapore dollar’s nominal effective exchange rate—remains appropriate as inflation gradually moderates and the economy adjusts to a more balanced growth path. Even with global uncertainties and uneven external demand, Singapore’s growth momentum has held steady, supported by resilient domestic consumption and ongoing recovery in key sectors. The central bank’s confidence in its current settings suggests it does not foresee significant inflationary pressures that would require tightening, nor a sharp slowdown that would call for easing.

The latest third-quarter figures reflect a measured improvement across several industries, reinforcing expectations that Singapore will maintain a steady economic trajectory into 2025. A positive output gap typically indicates that overall demand is slightly outpacing the economy’s long-run capacity, but Robinson highlighted that this is well within manageable levels. As global supply chains stabilize and external conditions gradually improve, MAS anticipates a smoother alignment between demand and capacity heading into the following year.

Overall, Singapore’s stable monetary policy outlook underscores the central bank’s focus on long-term economic health, predictable currency management, and careful monitoring of inflation dynamics. With policymakers signaling continuity and stability, investors and businesses can expect a consistent environment as the economy navigates the transition into 2025 and beyond.