Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Singapore’s Economy Stages Comeback In Quarter

Recommended Posts

http://www.nytimes.com/2009/07/15/business...mp;ref=business

HONG KONG — Singapore’s economy staged an unexpectedly vigorous bounce-back during the second quarter of this year, prompting an official revision of the full-year growth forecast and providing a piece of good news for Asia’s export-dependent economies.

On Tuesday, data released by the government showed Singapore’s economy grew at an annualized rate of 20.4 percent from April through June, compared with the previous three months, much more than economists had projected and a vast improvement over the double-digit declines recorded in previous quarters.

Singapore — like Hong Kong, Taiwan and Malaysia — is a small and open economy and an Asian financial hub that has been badly battered by the international financial and global turmoil that followed the collapse of Lehman Brothers last year.

Given the still-precarious state of the global economy, economists were still cautious about Singapore’s outlook. As in much of the rest of Asia, only a slow recovery is expected.

“That the result was less dire than forecast is a plus,†said Patrick Bennett, an economist at Société Générale in Hong Kong. But he warned that there were “plenty of challenges ahead for the Singapore economy.â€

Compared with the same quarter last year, gross domestic product fell 3.7 percent, which was a less severe contraction than economists had forecast.

As a result, the government said it now expected the economy to shrink between 4 percent and 6 percent, rather than as much as 9 percent.

The data and less-grim forecast illustrate the mixed picture around the world, as the global economy has at least stopped worsening. Still, it has yet to show signs of a significant or sustained rebound.

The Singapore report also cemented expectations that much of Asia would emerge from the crisis faster than other regions, thanks largely to the fact that Asian banks steered clear of the complex financial instruments that brought several European and American institutions to their knees.

Debt levels are also lower, allowing governments to introduce major stimulus packages. Singapore’s has been among the largest in the region, relative to the size of its economy.

Elsewhere on Tuesday, Australia reported that a key measure of business conditions jumped in June. But in Germany, an investor confidence index published by the ZEW economic institute unexpectedly dropped in July.

Many economists caution that much of the recent stabilization could be simply the result of companies’ replenishing the inventories they ran down amid the turmoil of recent months — in which case, the improvement could be temporary and not show a sustained recovery in consumer demand.

Reflecting this uncertainty, Singapore’s Ministry of Trade and Industry on Tuesday accompanied its improved G.D.P. outlook with plenty of warnings.

So companies restocking or sustainable recovery??

Tough call.

Share this post


Link to post
Share on other sites

what? a stimulus produces a stimulus?

definately sus.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.