Large Swings in a Small Economy

Singapore's economy is subject to much more volatility than a big economy like the US, where 1% change is huge...

2007 +7.8%
2008 +1.1%
2009 -4.8% (projected)

official data showed the economy grew 1.1 per cent for the whole of last year, significantly lower than the 7.8 per cent recorded in 2007.

OCBC Bank, for one, now believes the Singapore economy will contract 4.8 per cent this year, instead of its previous prediction of a 2.8 per cent decline.