Today’s headline in The Sunday Times read “Tharman warns of sluggish global economy“. This warning was no surprise to me. Few days earlier, I blogged on Global Economy Likely To Slow For The Rest Of The Year.
A spade is a spade. Personally, I heeded the warning that Singaporeans should brace themselves for the bumpy road for the rest of this year. The euro zone deepening crisis, the damaging after effect of the earthquake and tsunami disaster in Japan since March, the recent ailing of the US economy, and the upcoming US debt default possibility this August are serious problems creating uncertainties as to whether they are just temporary or symptoms pointing to a “double-dip” scenario waiting to happen.
Although, the fundamentals of Singapore economy are still good, our economy is almost totally dependent on the performance of external economies. As such, another global crisis like the one in 2008 can happen. On one hand, the newspapers reported Deputy Prime Minister Tharman warning of a sluggish global economy in the coming months. On the other hand, the papers also had him saying that a major global crisis like the one in 2008 was unlikely to happen in the coming months as the fundamentals of the local economy remained good. How can one warns others and says the warning is unlikely to happen. How will you react?