SINGAPORE — Singapore says its finances deficit for 2022 shall be decrease than anticipated — at $1.5 billion {dollars}, or 0.3% of its gross home product.

In his finances speech to Parliament on Tuesday, Finance Minister Lawrence Wong mentioned: “We anticipate a slight deficit of $2 billion Singapore {dollars} ($1.5 billion) or 0.3% of GDP for FY2022,” mentioned Wong, who can also be deputy prime minister. The nation beforehand estimated the 2022 deficit would are available in at S$3 billion.

He acknowledged that 2022 was a “12 months of brutal inflation worldwide” and rising prices pressures proceed to weigh on the Singapore economic system, which grew 3.6% final 12 months.

“By the top of final 12 months, world inflation was round 9% inflation reached historic ranges and lots of superior economies,” he mentioned.

“Singapore too needed to cope with these inflationary pressures — [the Monetary Authority of Singapore] has tightened our financial coverage 5 occasions since October 2021,” he added.

Singapore’s core inflation rose to five.1% in October, and stayed unchanged till December.

He mentioned Singaporeans should “brace ourselves for a interval of comparatively larger inflation each globally and likewise in Singapore.”

“There are some early indicators that world headline inflation charges are softening, however it’s untimely to declare victory. We anticipate headline inflation to stay excessive a minimum of for the primary half of this 12 months,” mentioned Wong.