The Singapore economy is expected to eke out modest gains in coming quarters as trade-related sectors face cyclical headwinds, the Monetary Authority of Singapore says on Wednesday in its biannual review.

The central bank maintains its projection of GDP growth this year at between 1 and 3%. MAS says recent monetary policy easings will support the economy and boost inflation over the next two years.

Earlier this month, it unexpectedly eased its exchange-rate based monetary policy, its third easing in 15 months.

“Cumulatively, these policy recalibrations will help keep the level of real GDP close to its potential in 2016 and 2017,” it says.

“These moves will also ensure price stability over the medium term by providing a partial offset to disinflationary pressures, boosting CPI-all items inflation by an average of 0.7 percentage point per annum over the next two years.”

Over the past two years, Singapore’s exports have been hurt by a global downturn in demand, resulting in losses for the manufacturing sector. The economy failed ...