Is Singapore immune to Asian contagion?
Their economic fundamentals look pretty good. Current account surplus somewhere around 16 billion dollars, foreign currency reserves stands at an enviable level of 100 billion dollars or so,hardly any foreign debt,GDP expected to grow 7-10% (may be a bit optimistic) etc etc.
With all this going for them, the currency has depreciated,stock market has gone down over 20%, real estate market not doing all that great,tourism has suffered.
Experts say,inspite of Singapore's obvious financial strengths,the contagion may affect them as well. One reasoning is that Singapore's banks are creditors to many in Indonesia,Malaysia etc and may have trouble collecting.
Any opinion,anyone? |
