Although the Singaporean economy (
grew 10% year on year for the first quarter of
, this southeast Asian economy is starting to feel the pain of
global economic woes.
The Singapore economy is highly reliant on exports because of its
prominent technology industry and a
thriving transport sector
Like many other emerging market economies, Singapore is
suffering from a substantial decrease in demand as the result of
concerns over the euro zone.
As a result, most pundits agree it's unlikely the Singaporean
economy can continue to grow at such a pace over the next
Euben Paracuelles, an economist for Nomura in Singapore,
claims that "(i)t's hard for Asia to escape the repercussions if
there's a European recession and it's accompanied by financial
market instability and a banking crisis."
Going forward, the situation for economies like Singapore is
difficult to discern until there is clarity from the European
quagmire. As a result, investors should hesitate going long
Singaporean equities at these levels.
As well, traders should stay short export-dependent economies
in east Asia like Singapore, Thailand (
), and South Korea (
) until the future of the peripheral economies of Europe becomes
EWS is down 1% in today's trading.