- March 16, 2020
- Posted by: avantconsulting
- Category: Singapore Economy
Federal Reserve rate cut to Zero to support economy – The United States of America Federal Reserves have just made a rate cut to zero percent. With this move, the Feds are trying to stem the massive fall in the stock markets that has caused global stock markets to follow suit.
With the Covid-19 outbreak expected to affect economies around the world, there has been a major slowdown in the whole world economy.
Singapore is one of the economies that will definitely be badly hit when things slow down around the world. Singapore is an open economy and an open economy will require the flow of funds and trade to ensure that it keeps going.
Trade has slowed as China battles the Covid-19 outbreak, it has only recently restarted its productions for the rest of the world.
Italy is also very badly hit as well as South Korea. This two industrial nations are also a major part in the world engine of economics and we will expect to see a big dip in world economic numbers.
There is no shock to the world that the federal reserves will follow to drop rates to zero – https://edition.cnn.com/2020/03/15/economy/federal-reserve/index.html
Europe is currently experiencing double digit percentage growth in number of new infection cases and we will expect to see even more cases to come from the Western world in the next few weeks to come.
Singapore has also issues travel notice for travelers and persons coming from ASEAN countries and also UK & Switzerland where governments have already given up on trying to limit the cases that are spreading in the nations. https://www.straitstimes.com/singapore/singapore-residents-advised-to-defer-all-non-essential-travel-for-next-30-days-as-part-of
Businesses that are related to travel or rely on tourism will defiitely be facing very big hits and will probably suffer for the near term and if this last longer will be suffering greatly. Similar to tourism, F&B and retail will also follow suit when a recession hits the many nations and hits the Singapore shores.
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