Singapore's economic growth will take a hit if the crisis in Iraq escalates further, so said city-state economists.
According to Maybank head of foreign exchange research Saktiandi Supaat and United Overseas Bank economist Francis Tan, a major military intervention in the Middle East will immediately impact on Singapore’s inflation.
Iraq and Iran account for a respective 3.6 and 4.1 percent of the world’s oil production. The transport and storage sector will see a big hit first, and that will affect the wholesale and retail trade segment. Households will also see higher electricity tariffs, and they could scale back on consumption, Tai said.
Bank of America economist Chua Hak Bin, however, said Asia is generally in a stronger position to weather an oil price shock, citing improving current account deficit position and moderating external debt ratios.
It is still far too early to conclude that the instability in Iraq is going to have a big hit on Singapore’s growth, he said.-VNA
According to Maybank head of foreign exchange research Saktiandi Supaat and United Overseas Bank economist Francis Tan, a major military intervention in the Middle East will immediately impact on Singapore’s inflation.
Iraq and Iran account for a respective 3.6 and 4.1 percent of the world’s oil production. The transport and storage sector will see a big hit first, and that will affect the wholesale and retail trade segment. Households will also see higher electricity tariffs, and they could scale back on consumption, Tai said.
Bank of America economist Chua Hak Bin, however, said Asia is generally in a stronger position to weather an oil price shock, citing improving current account deficit position and moderating external debt ratios.
It is still far too early to conclude that the instability in Iraq is going to have a big hit on Singapore’s growth, he said.-VNA
