Singapore’s economy contracted during the second quarter, and the government is calling for a fall in exports for the first time since 2001. The economy contracted at a general rate of 6% during the second quarter, giving the year-on-year economy a growth rate of a mere 2.1%, reports Reuters.
It is evident that the sluggish U.S. economy has hurt the Asian economies, such as Singapore. Non-oil exports to the U.S. fell 21% in the second quarter and dropped 12% to the E.U. Weakened demand in the major economies, has added to inflationary pressures. A turn around for the country could be dependent upon the U.S.’ economic health
ETFs associated with Singapore include:
- iShares MSCI Singapore (EWS), A heavy lean toward the financial sector at 51.43% followed by telecommunications at 14.3%; down 14.4% year-to-date
- NETS FTSE Singapore Straits Times Index (SGT), 48% in financials, 12.43% in telecommunications; down 13.4% for past three months
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