SINGAPORE, May 1 – Singapore Prime Minister Lawrence Wong has warned that economic growth will slow in the city-state this year due to the war involving Iran and the prolonged disruption of the Strait of Hormuz, News.Az reports, citing Al Jazeera.
In a May Day speech, Wong said the conflict was not expected “to be over anytime soon” and cautioned that supply disruptions could worsen in the months ahead.
“Here, in Asia, we are especially affected because of our high dependence on energy and other critical supplies from the Gulf,” Wong said.
He added, “Globally, inflation will rise, spreading from energy to food and then other essentials. Some economies may well slip into recession, and Singapore will feel the impact directly.”
“Our growth this year will slow, and inflation will be higher, and all this will put real pressure on businesses, workers and households,” he said.
Wong also warned that even if the Strait of Hormuz reopens, a return to normal conditions would not be immediate.
“Ports and energy infrastructure have been damaged. Shipping lanes will need to be cleared of mines,” he noted.
