Singapore economy may have slumped in the third quarter of 2012 but residents are not seeing any signs of slowdown in the city state.
Singapore economy may have slumped in the third quarter of 2012 but residents are not seeing any signs of slowdown in the city state. It's hard to tell there is a slow down from the crowds thronging the city state's main shopping district. Consumer confidence remains strong because the employment picture remains healthy. Singapore's unemployment rate is at record low of 2 per cent.
For the majority of the residents in Singapore, the drop in growth have had little impact on their personal lives. There is really no signs of slow down. New shops, bars and restaurants are opening literally every week. Going out on the streets, restaurants are still packed. Retailers are saying sales are holding up and in fact some are seeing an increase compared to last year. Furthermore, despite several rounds of cooling measures on Singapore property sector, the real estate prices are still climbing.
Even in the manufacturing sector, the worst hit sector, there is little sign of panic. Singapore manufacturing is closely tied to the strength of US and European economies. The sector includes pharmaceuticals, oil and gas equipment and electronics. Exports to the euro zone itself make up over 12 per cent of GDP. But there is little evidence of drastic cost cuts. Instead, companies are limiting the number of overtime hours an employee can work. There is simply less output required because of the slowdown in US and Europe. But most are still working the full week.
Singapore economy may be slowing down, but the booming Singapore property property market, low levels of unemployment and the bustling retail sector, the wealth effect and optimism has provided the confidence to the Singapore economy.
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