Singapore’s Woes Sound A Warning For Wider Asia

109

 

To those betting on a strong Asian rebound from the Covid-19 era, Singapore has a sobering message: “Think again”, reports Asia Times.

The decrease in growth

On August 11, the city-state’s Ministry of Trade and Industry narrowed its full-year growth forecast to 3-4%. It also revised downward growth in the second quarter to 4.4% from an initial 4.8% reading.

Singapore matters because of its role as Asia-Pacific region weathervane. Its open and trade-reliant economy is often the vanguard of zigs and zags in global demand. When container-ship parking around Singapore gets crowded, manufacturers have reason to shudder.

At the moment, Asia’s weathervane is signaling fresh headwinds coming its way. Some are coming from Washington, where the US Federal Reserve’s interest-rate hike cycle is accelerating. Others are emanating from Europe, where growth is slowing under the weight of high energy costs.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: Asia Times

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.