Open AccessHow Singapore’s Sovereign Debt Risk Has Changed from 2016 to 2021
Author(s) -
Tara Kou
Publication year - 2021
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v14n1p91
Subject(s) - debt , baseline (sea) , economics , credit rating , sovereign debt , external debt , sovereignty , investment (military) , covid-19 , business , monetary economics , financial economics , financial system , finance , political science , law , medicine , disease , pathology , infectious disease (medical specialty) , politics
In this paper, I build an economic model and adapt it to fit Singapore’s economic and historical background. My empirical analysis is based on data about external debt to GDP, foreign investment, and net export products and partners. But I also address concerns about risk factors coming from covid and the oil crisis. In my analysis, even in the worst case, Singapore is not going to be worse than the Netherlands in the IIR rating, which corresponds to an IIR rating of 90. In contrast to my baseline, risk assessment for Singapore is a rating of 93.