Saturday, October 11, 2008

Why SGdividends Think the Decoupling Theory is Fluff.

The decoupling theory that Singapore is cushioned by the twin rising powers of China and India has been a hotly debated topic for some time. SGdividends will now use facts to see whether it is true.

In our previous article, titled: Its Official - Singapore is in Technical Recession (Under the label: Economy Awareness), the chart shows non-oil exports to China has been increasing rapidly, albeit still a small percentage of the total pie. At first glance, the slow decoupling process from the US and EU seems quite true. Let us delve into it a little deeper....shall we?

China Top Exporting Countries

India Top Exporting Countries

China's top exporting country is still USA and its increasing. India's top exporting country is still USA and its increasing. So, yes we are exporting more to China and India but who do they export to, the USA!

It seems the decoupling theory is not really true. We are still interconnected...just more indirectly now.

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