In 2018 Singapore's growth benefited from the strength of world trade that led to significant increases in its exports and industrial production. However, according to the latest report released by Crédito y Caución, the main financial and transport services center for Southeast Asia will face in 2019 and 2020 the moderation of its economic expansion due to the cooling of world trade and the demand for imports. from China.
Singapore's per capita income and level of development meet OECD standards. The strategy of long-term growth of the city State, the development of high-tech industry, has begun to bear fruit in the biomedical sector. However, its economy is vulnerable to the high dependence of its trading partners and to the focus on specific sectors such as electronics and pharmaceutical products.
"Due to its high dependence on international trade and its integration into the Asian supply chain, Singapore is sensitive to the risks arising from an escalation of the Sino-US trade dispute and the hard landing of the Chinese economy," says the report. disseminated by the credit insurer. However, the effects of any destabilizing element must be limited due to the economic recovery capacity of the city state.
Singapore remains one of the strongest countries in the world in terms of sovereign risk and macroeconomic fundamentals. Its large foreign exchange reserves and the management of its monetary policy make it unlikely that its exchange rate will be affected by changes in international investment patterns.
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