Monday, October 13, 2008

Singapore is the first Asian country to fall into recession

Singapore has become the first Asian country to fall into recession, after growth fell for the second successive quarter.

The Ministry of Trade and Industry also revised downwards full-year growth forecast to around 3pc, citing a slowdown in the global economy and key domestic sectors.

Southeast Asia's wealthiest economy saw gross domestic product fall by 6.3pc during the third quarter having previously contracted by 5.7pc.

In a move to confront the downturn, the Monetary Authority of Singapore - its de facto central bank - said it was also easing monetary policy for the first time in more than four years.

Singapore Prime Minister Lee Hsien Loong said Asian economies face a "rough ride" for at least the next year as weakening consumer demand from developed countries hurt the region's exports.

Asian policy makers are warning of a deepening slowdown in their economies as demand from the US, Europe and Japan weaken amid turmoil in global financial markets.

1 comment:

Anonymous said...

As Singapore is open economy trading closely with US, it is he first Asian country to fall into recession. It's very bad and will affect other ASIN countries too.