"Singapore best positioned" to weather global slowdown

The global economy is expected to hit a soft patch from the second half of this year, led by the US and euro zone economy. That is the forecast given by investment bank Lehman Brothers. But it also says that Singapore, which has reinvented itself in recent years, is well positioned to weather this slowdown.

According to Lehman Brothers, the cyclical downtown is upon us; the slowdown in the US will be housing-led, and with global markets hit by fears of a US interest rate-hike, the US Fed has little choice but to raise rates to fight inflation.

As for Singapore, Lehman says it is positive that the city-state will be better positioned for cyclical weaknesses as it embarks on new industries. Lehman expects Singapore to be the second fastest growing Asian economy this year after China, forecasting GDP expansion of 7 percent. The risk is, though Singapore has diversified into other growth economies, it's open economy, with exports at 250 percent of GDP, is susceptible to any economic disruption.

- Oh, really. New industries? Like what, the casinos? Are these recession-proof?

(2006-06-13 18:52:12 SGT) [Biz] Permalink

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