Asia Times Online, 25 Dec 2008, Shawn W Crispin
"As perhaps Asia's most trade-dependent economy, Singapore had already slipped into recession by the third quarter of 2008, with - 0.6% year-on-year GDP growth. With global trade forecast to contract further in the quarters ahead, economists expect Singapore's growth to remain in negative territory through 2009. Given the government's perceived penchant for sometimes overstating growth on the upside, the actual economic situation next year could be worse than official statistics indicate.
Declining export volumes are expected to ripple adversely through the local economy, leading to significant lay-offs in the manufacturing sector and dampened consumer sentiment, including towards the crucial property sector. The government is expected to provide substantial fiscal support, including through the use of off-budget measures such as tax rebates, micro-loans and rental rebates, according to UBS."
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