Singapore Economic Conditions
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As per latest reports on Singapore economic conditions, Lee Hsien Loong, Prime Minister of Singapore, has called for economic integration among ASEAN nations so that they may be able to recover from tremors of global financial downturn.
As per latest reports on Singapore economic conditions, Lee Hsien Loong, Prime Minister of Singapore, has called for economic integration among ASEAN nations so that they may be able to recover from tremors of global financial downturn.
Lee Hsien Loong also reiterated that Singaporean economic conditions could get far worse as he predicted that levels of unemployment would rise to 5 percent in fiscal 2009. He has also said that maximum rate at which economy of Singapore would depreciate is 8 percent. However, this depreciation would depend a lot on how worse global economic slump turns out to be.
Manufacturing sector is an important area of Singapore’s economy as it occupies almost 25 percent of it. It is going to be affected in 2009 fiscal, which is an ominous signal for economic conditions of Singapore.
Exports are a major source of revenue for Singapore and Lee Hsien Loong expects there would be a reduction of more than 33 percent in this sector in 2009. If this happens it would make economic conditions in Singapore far worse as its manufacturing sector would be down by 33 percent as well. Major reason behind such an opinion is fact that Singapore exports almost every product made over there.
In an encouraging news on economic conditions at Singapore Lee Hsien Loong has said that national government is ready to introduce as many economic stimuli packages as needed to prop up national economy.
Lee Hsien Loong has also reiterated that he understands that it would take a significant time before Singapore economic conditions get back to normal. Much of this is due to decreasing levels of consumer spending. He said that it would be illogical to expect common people in Singapore to spend more in these times of economic distress as they also require to save for various purposes like retirement and old age.
He says that national government would need to function by taking these factors into consideration. He has also asked for help from neighboring countries like Malaysia and Thailand regarding increasing commercial transactions among themselves so that Singapore economic conditions get back to normal.
Singapore’s 2008 Reccession
As per current Singapore recession news, economy of Singapore has shrunk at a rate of 6.8 percent in third quarter of financial year 2008-09. This has been second time that Singapore GDP has shrunk in two consecutive quarters. This figure is worse compared to predictions of 6.3 percent made earlier by Singapore’s national government.
Gross domestic product of Singapore has been falling at a steady rate in last few years. This implies that Singapore is economically facing a recession. As a result of this crisis, GDP of Singapore dropped by 0.9 percent in 2001 and 2000. This crisis was a repetition of economic crunch that Asia faced in 1997, also known as Asian Financial Crisis.
As of now, Singapore’s national government has announced that gross domestic product is expected to go down by 1 percent in financial year 2009. In financial year 2008, economy of Singapore had shrunk by 0.6 percent. In spite of this crisis, central bank of Singapore had proclaimed that it would not consider deducting rates of interest before April 2009.
Causes of recession Singapore
There are plenty of causes behind recession Singapore. Primary cause is fall in demand for high end equipments, which is a major source of income for Singaporean economy. Manufacturing sector of Singapore comprises a quarter of gross domestic product of Singapore and fifty percent of this sector is made up of high tech equipments.
Global recession and Singapore
Singapore has been hit hard by recession that has affected almost all major economies in world. Singaporean economy depends a lot on exports and almost 66 percent of its domestic production is exported. If Singapore’s export partners are not in good economic condition then its natural that its own economy would suffer as well.
Fall in value of Singapore dollar
Singapore dollar has been depreciating at a steady rate in last few financial years. During 2001, one United States dollars was equivalent to 1.835 Singapore dollars. All this has hit its economy very hard.
