Singapore Shows Signs of Resilience amidst Global Economic Slowdowns
Singapore continues to show signs of resilience despite growing concerns on the state of the global economy following the European debt crisis and US and China slowdowns.
According to the annual international credit report of Moody’s, Singapore won’t be hurt by the ongoing financial turmoil that’s sweeping across Europe for its solid financial foundation. The credit agency believes this regardless of Singapore’s status as one of the most open economies globally.
Singapore practices a conservative investment and monetary policy that regulates investor activities and credit transactions that prevent both local and foreign players from overspending, which ironically, has plunged the Eurozone in debt.
Singapore also boasts of an abundance in public savings. Despite the increased life expectancy in Asia, retired and elder members of the Singapore population who may be still working will definitely be saved from any economic instability because of the Central Provident Fund (CPF) program. The CPF is a social security savings program for old citizens.
Despite some slowdowns at the end of last year, Singapore has constantly been enjoying a decent GDP growth with the increasing presence of new foreign and local enterprises on its shores.
Singapore’s economy, in fact, rebounded by 10% during Q1 of 2012. The boost was a result of increased activities in the manufacturing and real estate sectors.
Singapore is also upping up the ante with new research and development facilities for its engineering sectors and has also opened up new terminals to cater to more tourists and business travelers this year.
Economists also attribute political stability as one of the aspects that influence Singapore’s favorable business climate and economic standing. Tourist receipts make up a huge chunk of Singapore’s annual revenue.
Challenges may still threaten the Singapore economy which can be curbed through sustainable policy amendments, making most of its resources and productivity.