WORLD> Asia-Pacific
Singapore PM warns rough economic ride
(Xinhua)
Updated: 2008-10-10 14:11

SINGAPORE-- Singapore Prime Minister Lee Hsien Loong said Friday that Asian countries cannot avoid the impact of weakening US, European and Japanese economies, and Singapore must prepare for a rough ride at least over the next year, possibly longer.  

He made the remarks at the Global Indian Diaspora Conference here in Singapore.

He said the crisis in the financial system will dampen consumption and investment in the developed countries and affect growth all over the world.

While Singapore growth, he said, is already slowing, but its financial system "is sound", and economy "remains competitive".

Earlier this morning, Singapore's de facto central bank announced it revised down 2008 growth forecast to around 3 percent from a previous estimate of 4 to 5 percent with latest advance estimates showing the city-state's economy decline by an annualized rate of 6.3 percent in the third quarter.

Lee said, "over the last few years, when conditions were good, we had pressed on with upgrading and diversifying our economy. This will mean new and better jobs, even if some old ones are lost. The momentum from projects that we have secured will help to see us through this storm."

He also expressed confidence about Asia's enduring dynamism, saying "both India and China are continuing to transform their economies, and their emergence in a stable and peaceful region will benefit many other Asian countries."