hi 6B.

on the topic of econ, i will like to share some stuff that will unlikely to be taught in comming months.it is good to know more about whats happening around the world.

Recession in US
So what is recession. Personally, i can't explain it fully from my own words. Quote from wikipedia.org, it is define as "a decline in a country's real gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year." There is speculation that US is going to have a recession this year.

Contributing factors includes:
1, Oil and gold hit historic high as US dollar hit historic low.
2, US subprime-mortgage crisis.
3, Dropping on US stock market price.
4, GDP of 2.2% in year 2007.

If there is a recession in US, the world's economy will suffer togather with the US market. This is due to the major influence that the US economy has on the world economy.

How does it affect us?
ChannelNewsAsia news report[27th march 2008] states that US recession may cause Singapore's GDP growth to drop to 3%. The electronic sector of Singapore will be hit significantly, as demand from US will fall.

Reports also stated that the construction sector of Singapore will be her main pillar during the downward turn of the economic in 2008. GDP growth is expected to be slow down by almost half, from a 12.5 percent growth in 2007 to just 6.5 percent this year.

On the other hand, Singapore economic should be well maintained during the course of the year, as service sector and tourism should not be largely affected. Having F1 in singapore also do help in boasting their economic, as the tourism and service sector will benefit from this event.

On a down note, inflation should remain high in Singapore. Consumers will also cut back due to the slow down on the US economic.

moxiang