THE CHARTIST: SIN­GA­PORE­ANS have A HEALTHY HOARD Of SAV­INGS

Singapore Business Review - - FIRST -

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.

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