Singapore exports to Europe to decrease: minister

Singapore's exports will be hit by weakening demand in the European Union (EU), the country's Trade and Industry Minister Lim Hng Kiang has said.

Although Singapore has not been hurt by the sovereign debt crisis in some European economies, the government is monitoring the crisis very closely, Lim said in Parliament, local newspaper The Straits Times reported on Tuesday.

The financial instability in Europe caused by the crisis " remains a significant downside risk that could dampen growth in our financial sector, with negative spillovers to other sectors of the economy," he said.

Moreover, tough austerity measures in some European economies, combined with the weakening the Euro, could further shrink domestic demand in the EU.

Also, the EU is projected to grow by only one percent this year.

"These developments could affect Singapore's export performances, given that the EU as a whole account for 12 percent of our domestic exports," Lim said, adding that the government is "ready to respond when appropriate."
(Source:xinhua)