Project #19934 - Economoics

Demand for Singapore, Asian exports to rise next

year: UOB

 

By Mok Fei Fei

 

DEVELOPED economies will likely see moderate growth next year, giving a boost to export-oriented Asian

nations such as Singapore, according to analysts at United Overseas Bank (UOB).

Head of economic treasury research Jimmy Koh, at a briefing yesterday, said: "We are going into 2014 not in

a runaway situation, not an exciting growth environment, but (it is) more of a moderate environment."

Citing improving United States housing and employment data, UOB forecasts US growth to come in at 3 per

cent next year.

Sustained US economic growth is likely to increase the US' appetite for Asian products, benefiting Singapore,

Malaysia, Indonesia, Thailand and China, which have strong export markets. A firmer US dollar, which makes

Asian goods and services cheaper, is also going to help lift Asian exports.

UOB expects the greenback to strengthen against most Asian currencies as the US Federal Reserve is likely

to withdraw its bond-buying programme next March.

Besides the US, improved business confidence in Europe and Japan could lead to an increase in foreign

corporate investments in high-growth Asia.

But one danger looming on the horizon for Asia is rising household debt. In Singapore, household debt as a

percentage against its gross domestic product rose from 64.4 per cent in 2007 to 76.1 per cent last year,

largely due to home purchases. Also over the same period, China's household debt percentage increased

from 19.7 per cent to 23.1 per cent while in Malaysia, it jumped from 65.9 per cent to 80.5 per cent.

"Every crisis is the result of overleverage. In 2008, it was American banking overleverage; in 2012, it was

European sovereign overleverage. If we are not careful, the next crisis in years to come will be Asian

consumer overleverage," said Mr Koh.

On equities, UOB Asset Management's head of multi-asset strategy Anthony Raza said he expects the local

stock market to see gains of 6 per cent to 7 per cent next year.

feimok@sph.com.sg

Copyright © 2013 Singapore Press Holdings. All rights reserve

Need to analyze this article with econs concepts with APA referencing and intext citation

Subject Business
Due By (Pacific Time) 12/15/2013 23 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy