SARS’s Impact on Singapore
Economic Impact
Singapore is a small open economy. External shocks can result in high levels of
volatility resonating across the domestic economy. These shocks in turn would bring
about higher levels of risk and uncertainty in Singapore. At the beginning of 2003,
Singapore’s economic outlook was clouded by the Iraq War and its impact on oil
prices (Attorney-General’s Chambers, 2003). The unexpected outbreak of SARS led
to greater uncertainty in the Singapore economy. Singapore’s financial markets were
severely affected due to the loss of public confidence and reduced floor trading. The
impact of SARS on the stock market reflected in the Straits Times Index (STI) (see
Figure 2). The market did not react well to the SARS epidemic. In the first fortnight
of the epidemic, the STI closed down 76 points. Even though more cases were
reported, the STI climbed progressively up 86 points over the next fortnight,
eclipsing the earlier falls. This could be attributed to the strict measures which the
Singapore government introduced. The STI remained relatively stable over the
immediate fortnight as new cases were reported. However, it started a downward
plunge over the following fortnight as the number of cases peaked once more. The STI plunged 96 points. However, the resilience of the STI was shown when it
climbed back up, surpassing the level reported at the beginning of the SARS period.
The volatility of the STI demonstrates the vulnerability of a small open economy
from exogenous forces – in this case, the SARS epidemic.
SARS’s Impact on SingaporeEconomic ImpactSingapore is a small open economy. External shocks can result in high levels ofvolatility resonating across the domestic economy. These shocks in turn would bringabout higher levels of risk and uncertainty in Singapore. At the beginning of 2003,Singapore’s economic outlook was clouded by the Iraq War and its impact on oilprices (Attorney-General’s Chambers, 2003). The unexpected outbreak of SARS ledto greater uncertainty in the Singapore economy. Singapore’s financial markets wereseverely affected due to the loss of public confidence and reduced floor trading. Theimpact of SARS on the stock market reflected in the Straits Times Index (STI) (seeFigure 2). The market did not react well to the SARS epidemic. In the first fortnightof the epidemic, the STI closed down 76 points. Even though more cases werereported, the STI climbed progressively up 86 points over the next fortnight,eclipsing the earlier falls. This could be attributed to the strict measures which theSingapore government introduced. The STI remained relatively stable over theimmediate fortnight as new cases were reported. However, it started a downwardplunge over the following fortnight as the number of cases peaked once more. The STI plunged 96 points. However, the resilience of the STI was shown when itclimbed back up, surpassing the level reported at the beginning of the SARS period.The volatility of the STI demonstrates the vulnerability of a small open economyfrom exogenous forces – in this case, the SARS epidemic.
การแปล กรุณารอสักครู่..