Singapore could fall into a recession if Greece were to exit the euro zone, being the most vulnerable Asian economy, together with Hong Kong, given its close trade and financial links with Europe.
According to Credit Suisse and Standard Chartered, a disorderly Greece exit would lead to contagion across the currency bloc, triggering a recession in the city-state. Standard Chartered forecasts the economy will contract 0.3 percent in 2012 under this scenario.
“(If) the region enters a full-blown crisis, then there is no doubt that Singapore would be amongst the worst impacted of all Asian economies,” Robert Prior-Wandesforde, Director of Asian Economics at Credit Suisse said in a note. Full story
