Wednesday, April 14, 2010

What Singapore tells us on the world economy?


Singapore is mentioned as a thermometer of the world economy because of its special economic structure. Its economy consists of exports, imported goods refining for international consumption (manufacturing), and tourism, and totally relies on the world. One sneeze of the world finance would let Singapore get cold.

Through this thermometer, we have seen the dawn of the globally economic recovery. Singapore on April 14, 2010 revised its gross domestic product (GDP) growth forecast this year as the country's economy reported a strong expansion of 32.1% in the first quarter. Singapore expects its economy to grow at 7 percent to 9 percent this year, but not the earlier 4.5 percent to 6.5 percent forecast.

To prevent from the possible inflation brought by the fast growth of the local economy, Monetary Authority of Singapore suddenly announced on April 14 one-off currency revaluation on Singapore dollar to raise its exchange rate to US dollar 1% higher.

This action is expected to slightly reduce the world needs on Singapore’s exports, refine manufacturing, and tourism products and find a smooth economic growth in local. This year, Asian economy is still a leading factor on global economic recovery. Singapore has told us the global finance has come to the timing of just before the sunrise.