This is what could drag Singapore's GDP down soon

Will it badly hurt Singapore?

According to Moody's, Singapore's decline in GDP would be driven mainly by exports and investment. Private consumption would hold up relatively well.

Moody's said that exports dominate Singapore's economy, amounting to 226% of GDP in 2012. Global foreign trade activity drives Singapore's re-export business and in turn GDP growth.

"The relatively small domestic economymeans reduced household spending would be channeled into reduced imports, such as for motor vehicles, fuel and household goods," Moody's said.

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