THE possibility of Singapore’s central bank easing monetary policy at its scheduled policy review in April is rising, analysts say, as weak economic data points to a worsening outlook for growth.

    A batch of indicators released last month showed the city-state’s economy ended 2015 on a lackluster note, adding to worries that global headwinds will keep the trade-dependent economy on a wobbly footing in 2016.

    In 2015, exports fell 0.1 percent, the third straight year of annual decline while industrial production suffered its biggest year-on-year slump in eight months in December.

    “The probability of Singapore slipping into recession is increasing,” said Hak Bin Chua, ASEAN economist for Bank of America Merrill Lynch.

    While the baseline scenario is for the Monetary Authority of Singapore (MAS) to keep its exchange-rate based monetary policy unchanged at its semi-annual policy meeting in April, the chances of easing monetary policy have grown, Chua added.

    Against a backdrop of sliding oil prices and uncertainty over the global economy, a number of central banks have eased policy in recent weeks to counter downside risks to growth and inflation.

    In Asia, Indonesia’s central bank cut interest rates in January to lift its economy while the Bank of Japan stunned markets by adopting negative interest rates.

    To be sure, Singapore is not at immediate risk of a recession, even accounting for the possibility of some downward revision to fourth-quarter gross domestic product.

    The city-state’s economy bounced back to positive growth in the last two quarters of 2015 after contracting in the April-June quarter.

    GDP expanded at an annualized 5.7 percent in October-December from the previous quarter, as services sector growth helped offset weakness in manufacturing, according to the government’s advance estimate. More detailed GDP data is due later this month.

    (SD-Agencies)