Economics
Large Foreign Inflows are Growth Risk, Singapore Deputy PM Says
- Too much focus on current-account gaps, Shanmugaratnam says
- He speaks in interview at sidelines of IMF-World Bank meetings
Tharman Shanmugaratnam.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Capital inflows are proving to be just as much a curse as a blessing, with the potential to harm economic growth, Singapore’s deputy prime minister said.
“There’s too much short-term capital flows dictating the future of countries,” Tharman Shanmugaratnam said in an interview with Bloomberg Television’s Haslinda Amin at the sidelines of the World Bank and International Monetary Fund meetings in Bali, Indonesia. “And countries have to respond by tightening policy far more than is warranted by domestic circumstances just to defend their currencies, and what suffers is growth.”