Robust economic growth in Singapore could be good global sign
TEXT OF STORY
Steve Chiotakis: Investors are looking east to Singapore at what they say is a beacon of hope for a global recovery. The Asian city-state of Singapore says it expects its economy to grow at a 15 percent clip this year. That’s the fastest pace of growth in the world. The BBC’s Catherine Byaruhanga reports on why that could be good news for Americans.
Catherine Byaruhanga: Singapore’s economy relies heavily on exports. And as one of the most export-reliant countries in Asia, it’s often seen as a barometer for world demand. So the news that it’s seen record expansion already this year could be encouraging news across the world.
But with high unemployment in the U.S. and Europe struggling to reduce huge budge deficits, there are concerns that Singapore is being too confident. Hugh Young is the managing director of Aberdeen Asset Management in Asia:
Hugh Young: For Singapore, the outlook for the West has to be a concern. But a lot of what Singapore does is for the asian region itself, and the asian region itself still is growing at quite a strong rate.
Although the Singapore government expects the second half of the year to be tougher, it thinks that a double-dip recession is unlikely.
In London, I’m the BBC’s Catherine Byaruhanga for Marketplace.
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