Singapore: Reliance on FDI from Europe raises concern

According to Macquarie Research, growth outlook appears vulnerable in terms of investment, with nearly half of Singapore’s cumulative net inflows of foreign direct investment from 2005 to 2009 coming from Europe.

“Given the potential impact of fiscal austerity and a weak 2011 European GDP growth outlook, the likelihood of investment, and by extension GDP growth, undershooting in 2011 is increasing,” noted Macquarie Research.

View the graph here.

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