Singapore sees developing world growth, slow-down in West

The Government of Singapore Investment Corp will be investing more in developing countries, it has announced, because it expects a slowdown in economic growth in the West. Its chief investment officer, Ng Kok Song, said that growth in Asia will be 8 percent, compared to 2.4 percent in the developed world. The GIC manages over $200 billion, the larger portion of which will go into emerging markets.

(Reuters) – The Government of Singapore Investment Corp expects economic growth in developed countries to be slow over the next decade which is why it plans to invest more in the developing world, a senior official said on Wednesday.

Group Chief Investment Officer Ng Kok Song told a conference in Singapore that GIC’s in-house economists expect the developed world to grow by 2.4 percent this year compared with 8 percent for emerging Asia.

Asian economies can offset weakening exports by boosting domestic consumption but policymakers in the West are constrained by what they can do because of the accumulation of debt in previous years, he said.

GIC, which manages over $200 billion, said on Monday it will put a larger portion of its funds in emerging markets.

(Reporting by Charmian Kok)