It's Official. Singapore In Recession

[roninriot]

It's official.
Singapore is in another recession.
Your thoughts?


SINGAPORE (AFP) - - Singapore's trade-sensitive economy has declined for a second straight quarter, the government said Friday, meaning the city-state has entered a recession for the first time in six years.
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On a seasonally adjusted quarter-on-quarter annualised basis, real GDP declined by 6.3 percent in the third quarter after contracting 5.7 percent in the previous quarter, estimates from the Ministry of Trade and Industry said.

It did not describe the economy as being in recession, but a technical recession is generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.

Economists polled by Dow Jones Newswires had forecast a 0.3 percent quarter-on-quarter rise in gross domestic product (GDP), the value of goods and services produced in the economy.

Singapore's last technical recession occurred in 2002, and the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.

 

[betsybug]

Markets are down this morning around the world.
Gloom. Doom.

Related to this crisis, Tan Kin Lian (former NTUC CEO) will be at Speaker's Corner this Sat 5-7pm. This is organised to protest and rally support re: Minibond and DBS High Notes fiasco. Quite possibly going to garner the largest crowds in Hong Lim ever. A lot of hardship stories of retirees, old folks and other people losing their savings through dubious sales by our banks.

 

[obzervr]

Developments through this recession will be very interesting as it was preceeded by the collapse of financial giants. It will be a big test to neoliberalists ideas of nonregulated 'free market'. Learning from a century ago, there is a possibility for left leaning economic measures (regarded as protectionism by liberal economists) will be taken by several countries/regions.

 

[fgl]

SINGAPORE - Asian economies face a "rough ride" for at least the next year as weakening consumer demand from developed countries hurt the region's exports, Singapore Prime Minister Lee Hsien Loong said Friday.

"The world is caught up in a financial storm, and dark clouds fill our immediate horizon," Lee said in a speech in Singapore. "The fear and panic gripping financial markets everywhere will take time to subside."
Asian stock indexes have plummeted this week along with their counterparts in the U.S. and Europe on fears turmoil in the financial system will spark a global recession. Japan's benchmark Nikkei 225 index tumbled as much as 11 percent Friday while Hong Kong's Hang Seng index was down more than 7 percent.
"Asian countries cannot avoid the impact of weakening U.S., European and Japanese economies," Lee said "We must prepare for a rough ride at least over the next year, and quite possibly longer."
"The crisis in the financial system will dampen consumption and investment in the developed countries and affect growth all over the world," he said.
Singapore's economy, which relies heavily on exports, contracted 0.5 percent in the third quarter, the government said Friday. The government also said it cut its 2008 forecast for economic growth to 3 percent from between 4 percent and 5 percent.
The central bank, known as the Monetary Authority of Singapore, said in a statement Friday it shifted it's foreign exchange policy to a "zero percent appreciation" of the Singapore dollar from a "modest and gradual appreciation" in a bid to boost the competitiveness of the country's exports.
Lee's comments contrast with the more upbeat outlook offered by Asian Development Bank Haruhiko Kuroda on Thursday, when he said Asia's financial system appears to be little affected by the U.S. sub-prime mortgage problems and that Asia overall will enjoy robust growth.
"The impact on the financial sector in Asia is limited this time," ADB President Haruhiko Kuroda told a news conference in Tokyo Thursday. "We expect a fairly robust growth to continue, although we expect the growth rate would be smaller."

 

[juju]

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." - Warren Buffett

get ready your guns my friends, this is the time when others are fearful... are you one of them?

 

[obzervr]

The great depression of the early 20th century was preceeded by several factors such as:

1) The Second Industrial Revolution leading to improved air and land travel and communication
2) Stock Market Crash
3) Fall of banking and financial institutions
4) Protectionist Policies by Superpowers that reduced trade between US-Europe (Asia and Africa was still underdeveloped then)
5) Lower Spending power due to high inflation
6) Erratic Climatic Changes causing droughts and lowered food supply

If we look at recent trends,

1) The Internet revolution has led to reduce needs for travel for purpose of communication.
2) Tokyo saw its worse stockmarket performance in two decades yesterday
3) Major financial houses have collapsed and others are begging taxpayers to bail them out
4) To be observed
5) Inflation exceeds wage increase thus lowering actual income earned
6) We are still feeling the effects of the Food Crisis of recent months

For point 4, with China, India and South America flooding the shelves with cheap alternatives to branded stuff (as well as conterfeit stuff), it may not be a surprise if developed economies will use the slightest fault to create a blanket ban on imports from China, India and South America. The recent Melamine tainted milk issue was a good example where some countries extend import ban beyond milk based products to cover all processed foodstuff.

Are we looking at a possible long recession or maybe another great depression coming?

Rafiz

 

[faizal_rocks]

Was about to tender my resignation from my present job this past few weeks, then I decided to stay for now when the recession came. I mean, resigning when u haven't got a new job secured at this period of time is indeed risky. Meantime, I'm applying for other jobs as well.

Is it me or are most of us not pondering of this issue seriously?

 

[Denosha]

I just secured my first job recently (in fact i just finished my first week of work) since I graduated this year. If I hadn't I think I would be having problems now. Hopefully this recession won't lead to retrenchments and downsizings and companies will be able to ride it out.

 

[zax]

at least shipping isn't affected much , thank god for that

 

[growlingsoulpup]

Just wanted to point out something. On average, the business economic cycle of expansion, crisis, recession and recovery lasts for 100 months. The average recession lasts for 8 months. Granted this is no ordinary recession, but this will be a storm that we can ride through. Let's try to stay positive and optimistic.

 

[hifi_killer]

i think the cycles of economic boom, recession and recovery are getting shorter and shorter. Good luck to the biz undergrads.

 

[most_wanted]

since Singapore in recession, is there any chance of swee lee conducting eoy sales?

 

[Denosha]

Join the civil service lor. That's what I did. They are quite open to all different kinds of degrees. Especially MOE (which is who i joined) where many of the jobs are basically "a degree in any field". It's more of your soft skills that will differentiate you from the other candidates applying for the job.