It’s official. Singapore is in recession, or “technical recession” to be precise.
After 2 consecutive quarters – i.e. Q2 2008 and Q3 2008- of economic contraction, our economy is now in what economists call a technical recession. For the past 2 quarters, we achieved negative growth.
As with all recessions, expect to witness more retrenchments, business downsizing, fire sales of cars and condos, housing foreclosures, and the like.
Hopefully we also get to see lower prices, and not the opposite.
References: AFP (via Google) and Bloomberg. See also Minister Lim Swee Say’s warning about retrenchments.
7 Comments
Singaporeans’ worst fears have arrived, but it is not unexpected as being a small country dependent on the global economy, Singapore, like other nations, cannot be spared from the spill-over effects of the US global crunch.
Singaporeans, now is time to tighten your wallets and spend lesser. But for the 666,600 millionaires with a net worth liquidity of US $1 million(excluding property), they may not feel the pinch, unless their businesses are also affected.
For the adventurous, this is golden time to invest in stocks and shares as their prices are low right now.
Finally I can start to buy some stocks, but I think there will be further selldown since everybody is still in panic! This is really good for me! =)
its prudent to analyse ones financial health and not only the financial markets.
of course its good for everyone if the markets turn and all these bad news are gone and swept away for good.
hoever, realistically, do you think that will happened now,in the near future?
I doubt so.
we have to remember that there are still lots of potential pitfalls lurking around the corner waiting for the naive, gullible and especially the greedy.
if one is sharp, this might be the beginning of the downturn or at best the middle of it. we have yet to see the corporates and consumer side of all these credit crunch.
of course, in trading, you can have your own views and strategies. however, to blindly follow is a sure way to lose all your money.
good luck!
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Wait for a while before buying… the credit default swap problem is far from over. I wrote about this problem here BTW:
http://blog.5m10y.com/2008/10/06/understanding-the-coming-storm-and-retirees-life-savings-depleter-credit-default-swaps-credit-linked-notes/
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