NEW YORK ( TheStreet) -- As Asia continues to record stellar economic growth, Singapore and the exchange-traded funds (ETFs) that track the city-state remain attractive.
In the first half of 2010, Singapore has seen stratospheric growth. According to government data released Wednesday, Singapore's economy grew by 18.1% in the first half of this year compared with the same period as last year. Primary drivers were increased tourism and strong exports. Overall growth for the year is expected to be 13% to 15%.
Singapore should benefit from the V-Shaped economic recovery that is being seen in Asia. Nearly 80% of its exports go to Asian countries like China, Malaysia, Indonesia and Japan. In June, exports to China and Japan jumped 39% and 75%, respectively, from the previous month.
To further add to Singapore's appeal, private consumption within the city-state is expected to increase as a result of improved employment, rising incomes and the income effect of higher equity and property prices. Additionally, business confidence in Singapore is on the rise, which is expected to give business investment a boost. In particularly, financial and business services are expected to see growth, and construction investment should be supported by government-funded infrastructure projects.Lastly, Singapore has tamed its inflation threat by revaluing its currency. After allowing the Singapore dollar to appreciate and be revalued, inflation is anticipated to be between 2.5% and 3.5% for 2010 and should not be of much concern. In a nutshell, Singapore remains appealing and likely will continue to flourish in the coming months. Some ways to gain access to this Asian economy include: iShares MSCI Singapore (EWS). iShares FTSE EPRA/NAREIT Dev Asia Idx (IFAS), which allocates 12.6% of its assets to Singapore. WisdomTree Pacific ex-Japan Total Div (DND), which allocates 11.4% of its assets to Singapore. iShares S&P Asia 50 Index (AIA), which allocates 10.3% of its assets to Singapore.