ECONS ANSWER (might not be complete)

Slowdowns in US, Eurozone, Japan and Asia --> lower income as well as les optimistic business outlook and lower consumer confidence --> lower demand for consumer goods including imports from Singapore. Demand for imported goods are income-induced. As a result, Singapore will reduce exports to these regions --> fall in net export --> multiple contraction of national income and hence negative economic growth in singapore.

The global financial and economic shocks will be transmitted to domestic economic activity both directly and indirectly. The global financial crisis 2008/2009 and the resultant squeeze in liquidity and credit impinge on domestic economic activities in 3 main ways:

Firstly, the crisis has an immediate impact on the sentiment-driven segments on the financial sector, such as wealth advisory and brokerage & treasury activities.
Second, as consumer sentiment weakens, this has a direct bearing on domestic-oriented activities such as retail trade and those related to the property market.
Third, the repercussions on the external-oriented sectors come indirectly through a widespread contraction in economic activity and a sharp pull back in spending in the external economies, including Asia. Given open nature of Singapore economy, a large proportion of the industries such as manufacturing, transport-hub and tourist services are quickly affected by the fall in external demand.

Subsequently, as business conditions worsen, companies’ profits margins are squeezed, forcing them to curtail investment spending and cut back on employment and wages. This later in turn further dampens consumer sentiment and consumption, thus exacerbating the contraction in domestic-oriented activities. As a result, Singapore economic growth has been negatively impacted.