Gloomy global outlook looms over vulnerable Singapore

A gloomy global outlook hangs over Singapore’s less-than-rosy prospects in 2015. According to ICAEW, Singapore is particularly vulnerable to the global growth slowdown, which can overshadow the positive effects of the ASEAN integration.

“More worrying are the knock-on effects from the slowdown in global growth. Singapore’s reliance on trade and therefore on robust growth in other major economies makes it hugely vulnerable to the gloomy global outlook,” noted ICAEW.

Here’s more from ICAEW:
Singapore’s economic growth has underwhelmed recently, coming in at a relatively slow 2.4% year on year.

Construction expansion fell sharply from 4.1% in Q2 to 1.4% in Q3; this resulted from the government’s conscious plans to deflate the property market which have had considerable success and improved Singapore’s long-term prospects, reducing the risk of a bubble.

More promisingly, the end of four years of negotiations of a free trade deal with the EU will reduce tariffs on both sides and raise mutual investment.