Analysts are pointing to Singapore’s economy and projecting that the worst is likely over; if true, the exchange traded fund (ETF) could be following suit.A second stimulus package may not be needed, as the nation appears to be in recovery mode after a deep recession, the deepest in its 44 years. GDP had fallen 14.6% in the first quarter from the fourth quarter of 2008. In the fourth quarter, GDP shrank 16.4%.

Singapore’s manufacturing sector is the backbone of its trade-led economy, with the bulk ending up as shipments to the world’s major markets such as the United States and other industrialized nations. The lowered global demand had taken its toll on the Asian nation, explains the Associated Press.

Shamim Adam and Chan Sue Ling for Bloomberg report that Singapore joins other Asian nations in showing signs it may be past the worst of its yearlong export slump. Meanwhile, The Bank of Japan may raise its assessment of the economy for the first time since July 2006, even after a report showed a record contraction in the first quarter, economists say.

  • iShares MSCI Singapore Index (EWS): up 27% year-to-date

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