Sharp growth recovery expected as Singapore largely ignores Eureopean bank deleveraging.
According to OCBC, the International Monetary Fund expects Singapore 2012 GDP growth to be below 3% (OCBC expectation: 2.3%) this year but to accelerate to 3.5% next year in line with our expectations.
They noted that while the weaker global demand would weigh on near-term growth potential, there is plenty of policy room for Singapore, and deleveraging by European banks has not affected Singapore too significantly but requires close monitoring going forward.
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