Economic outlook for 2008 appears to be very bright and a growth rate ranging between 4.5 percent to 6 percent has been predicted. Singapore’s fundamentals are strong, rate of growth is good. But uncertainties cannot be ruled out. The article below suggests the same.
Experts and economists are of the opinion that the economy of Singapore will be driven by the global economy in the FY 2008, the US economy in particular. Senior officials of the government are of the opinion that the country should be able to abide by the economic growth of 4.5%-6% predicted by the government.
This forecast is being made even though the conditions in the stock markets around the world are very volatile and with the effects of US subprime mortgage crisis still high.
Strong Economic Fundamentals:
Economic outlook for 2008, as per officials of the government are strong because of the “robust growth” manifested by the economy of this country.
Even though the rate of growth predicted (4.5%-6%) is less than FY2007, the “economic fundamentals” are strong enough to provide back up.
It is also being anticipated that investments in the manufacturing sector may go up to $16 billion in the current year (FY 2008). Reports suggested that the service sector is also doing very well. Few are of the opinion that owing to the recession in US, the trading partners of Asia are bound to get affected. But IMF or International Monetary Fund thinks otherwise and has predicted that even though economic growth in India and China is likely to be 8% and 10% respectively, Asian markets will continue to be sound as domestic demand will be quite strong.
The aforesaid situation is likely to result provided the economic conditions in Asia and the other global markets continue to maintain this status quo. If for any reason whatsoever, the current situation in the United States of America slackens further, it spells trouble not only for Singapore but also for the other economies of the world. This may lead to stunted growth in economies, affecting the natural state of affairs.