Singapore Maintains Currency Stance as Economic Growth Slows

Singapore Maintains Currency Stance as Economic Growth Slows

This Bloomberg article discusses the Central Bank of Singapore's decision to continue a gradual appreciation of the Singapore dollar. This decision was made in an attempt to "curb inflation while supporting growth as the economy expanded less than analysts estimated last quarter." Singapore’s manufacturing sector grew 4.5 percent in the first quarter from 3 months prior, compared with 10.4 percent in the final 3 months of 2013. Services fell 1.8 percent in the same time frame, while construction expanded 10.7 percent. The article discusses the likely transfer of capital back to wealthier nations in the coming months if growth is not spurred in the city-state island.