THE CHARTIST: SINGAPOREANS have A HEALTHY HOARD Of SAVINGS
With Singapore’s working age population expected to decline starting 2020 and its number of elderly set to boom, the city-state is staring at a gloomy prospect of depressed domestic demand and economic growth. But it has a saving grace: a healthy hoard of savings.
“With global trade unlikely to resume its past high growth rates, Singapore will find it difficult to export its way out of a demographic decline,” said Trinh Nguyen, senior economist, emerging Asia at Natixis. “The good news is that Singapore is ageing with plenty of savings.” She said Singapore’s yearly current account surplus reaches roughly 20% of GDP, and local corporates are already deploying these savings to expand overseas in faster growing markets as the domestic economy becomes saturated.