Economic
Research
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28 July 2016
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Singapore
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Economic
Highlights
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Britain’s decision to leave
the EU adds another layer of worry to global economic growth. As the EU’s
largest trading partner in ASEAN, the steep drop in the Euro (EUR) will
likely pose a drag on Singapore’s
exports and its manufacturers. At the same time, the spike in global
uncertainty could spark coordinated easing from major central banks,
especially from the European Central Bank (ECB) and the Bank of Japan (BOJ),
though both are still waiting for post Brexit economic data to determine the
impact and their next moves. This will likely keep the USD strong and
commodity prices weak. Also, it would further pressurise Singapore’s services sector, which are closely
linked with trade and rely on business from China
and Indonesia
for the bulk of their business. Overall, we project for Singapore’s
real GDP growth to weaken to +1.4% y-o-y in 2H, from 2.2% in 1H.
Economist: Ng Kee Chou
| +603 92802179
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Thursday, July 28, 2016
Will Singapore Ease Policy To Cushion Brexit’s Impact?
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