Singapore economy may be adversely affected by Indonesia slowdown: Economists
Singapore's economy is likely to be adversely affected by a looming growth slowdown in Indonesia and the recent plunge in the rupiah, economists say.
They note that while the overall impact may prove to be small, a pull-back in South-east Asia's largest economy could hurt the city-state, mainly through trade and tourism links.
Indonesia hiked interest rates last Thursday after a sharp fall in the rupiah, which has plunged 12 per cent against the US dollar this year to reach a four-year low.
The move calmed markets but led some economists to cut forecasts for growth, as the weak currency worsens inflation and higher interest rates hurt spending.