Boston, MA -- (SBWIRE) -- 10/01/2013 -- Core Views

Singapore's economy is in the midst of a longer-term rebalancing as the government looks to reduce the country's reliance on foreign labour, and this will have substantial effects on inflation and economic growth over the medium-term.

Despite concern over Singapore's increasingly leveraged households, in which total debt has soared to approximately 150% of income, we reiterate that the country's household balance sheets are still, on the whole, quite healthy. While there will undoubtedly be repercussions for both lower income households as well as those that have leveraged themselves aggressively (in order to take part in the country's housing boom) once global interest rates begin to normalise, we nevertheless stress that Singapore remains among the best-placed developed markets to weather such a phenomenon.

Key Forecast Changes

We continue to believe that Singapore's trade prospects for the remainder of 2013 remain difficult, and have downgraded our fullyear export and import growth forecasts to 1.1% and 2.1% from 2.9% and 4.0%, respectively, bringing the country's 2013 real GDP growth forecast to 2.2% from 2.5% previously.

View Full Report Details and Table of Contents

As a result of mounting downside risks, including a continuing deterioration in external demand conditions, we have downgraded our end-year Singapore dollar forecast to SGD1.2500/US$ from SGD1.2300/US$ previously. Likewise, we have downgraded our 2013 average for the unit from SGD1.2300/US$ to SGD1.2500/US$, and we believe that risks to this forecast are relatively evenly balanced.

Looking ahead, we see little reason to expect a considerable export rebound before the end of 2013, and continue to believe that, while trade activity may continue to improve into Q313, any recovery is likely to be transitory. Nevertheless, Singapore's external position remains one of the most sound in the world.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Country Reports research reports at Fast Market Research

You may also be interested in these related reports:

- Estonia Business Forecast Report Q4 2013
- United States Business Forecast Report Q4 2013
- Bulgaria Business Forecast Report Q4 2013
- Slovakia Business Forecast Report Q4 2013
- Chile Business Forecast Report Q4 2013
- Philippines Business Forecast Report Q4 2013
- United Arab Emirates Business Forecast Report Q4 2013
- Hungary Business Forecast Report Q4 2013
- Iran Business Forecast Report Q4 2013
- Venezuela Business Forecast Report Q4 2013