Singapore has very bad news not only for its own people, but also for the whole world. Small island economy almost came cease In the second quarter, mostly due to the US-China trade war, then it became tense China withdrew The $ 10 billion new tariff is not yet available for Chinese products worth $ 300 billion.
The Ministry of Trade and Industry (MTI) forecasted economic growth this year on Tuesday (August 13), lowering Singapore's annual growth From 0% to 1% from 1.5% to 2.5% of previous assessment. This will be the slowest growth of 10 years since the start of the Great Depression in December 2007 to June 2009.
The second quarter results show that the country's economy fell 3.3% in the first three months of the year to 3.8% quarter-on-quarter. Reuters economists estimate the decline of 2.9%, while Singapore itself is down 3.4%. Anyway, this is a. Boosts bets decayat an angle. It needed another quarter of the economic downturn.
Singapore's Ministry of Commerce and Industry: "Looking ahead, GDP growth in many key demand markets in Singapore in the second half of 2019 is expected to slow down or the first half of the year. " But Edward Robinson, chief economist at the Singapore-based MAS, said his position remained unchanged.
The rapid deterioration of Singapore's economic data has prompted MAS to be simplified monetary policy, a step that will weaken the Singapore dollar and help export. The main sector affecting the country's economy is production, which decreased by 3.1% in the second quarter of the previous year. Its retail sector also dropped by 3.2% compared to the previous year.
What is the biggest problem, even when it is falling? This is a big deal because Singapore can be one of the smallest countries in the world, but the export hub is very sensitive to external shocks, Barometer global demand for goods and services. The nation looks like a system that controls the tsunami entry system.
Since the city economy is heavily dependent on trade, it was one of the first places in Asia during the global crisis. Similarly, it will be one of the first developing economies. For example, Singapore is canary at coal mines, the miners would carry the cannon with them, as birds die of the toxic gas.
In June, this record fell on the wall and the country's exports fell by 17.3% compared to the previous year – the fastest decline in more than 6 years, and the decline in computer chips supplies. Singapore Strategic Address a transit point It is designed for the Asian base for products originating in and out of the Western markets, as well as for some high-tech goods manufacturers.
Exports from India fell In June, Indonesia was the largest economy in South East Asia, whereas its exports fell by 8.9% in June. One month ago exports of South Korea decreased by 10.7%. In June, the total trade turnover of Malaysia decreased by 6%, while its exports decreased by 3.1% compared to the same month of the previous year.
Now, the US-China trade bargain is not visible scratch effect The difficult economy of Singapore can spread across the region. When China concentrated its muscle on Tuesday, its central bank set the official dollar exchange rate for yuan at 7.0326 – a fourth session, the currency was weaker than the psychological point of 7 yuan for one dollar. .
In the process of devaluation of the Chinese currency, the US received a "currency manipulator" label. President Donald Trump has since announced that the US giant China does not do business with Huawei. Further depreciation It can be Yuan or the Renminbi, as it will depend on the next steps of the Trump to counter Beijing's shock.
Last week, interest rates allocated by India, Thailand and New Zealand provide the necessary signals that the economic growth forecast may deteriorate. Last week's National Day message, Prime Minister Lee Hsien Long noted that Singapore is experiencing a situation like this. economic downturn, the country is eager to stimulate its economy with a deep pocket – as of May 2019, $ 263 billion.
– Finance Twitter