Weaker dollar to boost export earnings

SINGAPORE — Singapore’s economy shrank the most on record in the
last quarter of 2008 and the government forecast a 5% contraction this
year and a possible fall in consumer prices, which may prompt a one-off
currency devaluation.

A government declaration that the economy was suffering its
worst ever recession and official forecasts of a continued slump
suggested to analysts the central bank could push down the center of
the trading band for the Singapore dollar, effectively devaluing it to
help the key export sector.
The grim figures, largely a reflection of Singapore’s exposure
to the slump in global trade, also pave the way for an expansionary
budget on Thursday as the government scrambles to shelter the economy
from the worst global financial crisis in decades.
"The Singapore economy is going through its sharpest, deepest
and most protracted recession," the Trade Ministry’s Second Permanent
Secretary Ravi Menon told journalists. 

http://www.bworldonline.com/BW012209/content.php?id=022
http://biz.thestar.com.my/news/story.asp?file=/2009/1/22/business/3082802&sec=business
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