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Singapore PM warns over economy Singapore PM warns over economy
(about 5 hours later)
Singapore's prime minister Lee Hsien Loong has warned that his country faces its worst economic crisis since World War II.Singapore's prime minister Lee Hsien Loong has warned that his country faces its worst economic crisis since World War II.
Exports from Singapore are falling at their fastest rate since records began, down 24% last month on 2008 figures, and down 35% in January.Exports from Singapore are falling at their fastest rate since records began, down 24% last month on 2008 figures, and down 35% in January.
Ministers are predicting that Singapore's trade-dependent economy will contract by up to 10% this year.Ministers are predicting that Singapore's trade-dependent economy will contract by up to 10% this year.
In an exclusive interview, Mr Lee told the BBC how his government will cope.In an exclusive interview, Mr Lee told the BBC how his government will cope.
He said government spending would help cushion the blow, but that the island state would have to wait for a global recovery to revive its economy.He said government spending would help cushion the blow, but that the island state would have to wait for a global recovery to revive its economy.
Worst in decadesWorst in decades
Trade has driven Singapore's economy throughout its 200 years of existence.Trade has driven Singapore's economy throughout its 200 years of existence.
And, says Mr Lee, even record levels of government spending cannot stop the island state sliding into its worst recession in decades.And, says Mr Lee, even record levels of government spending cannot stop the island state sliding into its worst recession in decades.
"Well we're going to have very negative growth this year," Mr Lee said."Well we're going to have very negative growth this year," Mr Lee said.
"So I think if we need to do more, we will do more. We had a very decisive budget this year - a very directly focused one - on saving jobs... and helping people to see through the downturn."So I think if we need to do more, we will do more. We had a very decisive budget this year - a very directly focused one - on saving jobs... and helping people to see through the downturn.
"But we must understand is that what we can do is buffer the impact. We must wait for the storm to pass," he said."But we must understand is that what we can do is buffer the impact. We must wait for the storm to pass," he said.
Economic barometerEconomic barometer
Almost everything Singapore makes - from electronics, to pharmaceuticals, to oil rigs - is exported.Singapore PM Lee Hsien Loong admits his country is vulnerable It is the world's busiest container port - one fifth of all container shipments pass through its state-of-the-art facilities. Almost everything Singapore makes - from electronics, to pharmaceuticals, to oil rigs - is exported. Singapore PM Lee Hsien Loong admits his country is vulnerable It is the world's busiest container port - one fifth of all container shipments pass through its state-of-the-art facilities.
So it is a perfect barometer for the health of the global economy, and the dramatic fall in exports and shipping here this year show trade grinding to a standstill, as do the dozens of empty ships lying at anchor offshore.So it is a perfect barometer for the health of the global economy, and the dramatic fall in exports and shipping here this year show trade grinding to a standstill, as do the dozens of empty ships lying at anchor offshore.
This island has also become a regional financial services hub in recent years, attracting hundreds of thousands of foreign bankers - many of their jobs have now gone.This island has also become a regional financial services hub in recent years, attracting hundreds of thousands of foreign bankers - many of their jobs have now gone.
But perhaps the biggest question hanging over Singapore is what the impact record levels of local unemployment will have on the government's popularity.But perhaps the biggest question hanging over Singapore is what the impact record levels of local unemployment will have on the government's popularity.
There is no political opposition to speak of, and public demonstrations are banned, but people may find other ways to express their discontent if this recession proves to be a prolonged one.There is no political opposition to speak of, and public demonstrations are banned, but people may find other ways to express their discontent if this recession proves to be a prolonged one.