Singapore’s president cites global ‘mistakes’ as inflation worries World Economic Forum

Tharman Shanmugaratnam, a veteran economist and ex-finance minister, said that inflation would be lower if not for 15 years of mistakes

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Singapore’s President Tharman Shanmugaratnam (second from left), International Monetary Fund Managing Director Kristalina Georgieva (third from left), and others take part in a panel discussion at the World Economic Forum annual meeting in Davos, Switzerland, last month. Photo: Xinhua

Published: 8:42am, 2 Feb 2025Updated: 8:45am, 2 Feb 2025

Global inflation has yet to die and advanced economies outside China cannot be complacent at a time of fickle consumers and trade tensions, according to the last Davos panel of 2025.

Luminaries from International Monetary Fund chief Kristalina Georgieva to BlackRock Chief Executive Officer Larry Fink acknowledged that, for all the efforts by central banks to tame consumer prices, policymakers cannot afford to take their eye off the ball.

“Most of the body of the genie is in the bottle, kind of getting stuck there,” the IMF managing director said. “But the legs are kind of hanging still out. We need to push it all the way down.”

The remarks chimed with concerns aired frequently during the past week in and around the World Economic Forum, a period coinciding with the first four days of Donald Trump’s new term. While his arrival as US president excited finance executives, it has largely caused global economists and central bankers to wince at the possible fiscal, inflation or growth consequences.

That contrasts with the cautious optimism that featured during last year’s Davos finale, where participants exuded nervousness at the possibility of a Trump comeback but did wonder aloud if the global inflation shock may fade. Fink isn’t convinced.

“I believe the bond market is indicating that inflation may be higher than we think,” he said Friday. “The genie may be coming out of the bottle.”

Singapore’s President Tharman Shanmugaratnam told the World Economic Forum in Davos that central banks and fiscal authorities had “made mistakes in the last 15 years”. Photo: EPA-EFE