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Asia and Oceania
Singapore |
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Last reviewed: 05 November 2009 |
Country information
ECONOMY
Basic Economic Facts
GDP (at 2000 market prices): S$233.535bn (2008)GDP per capita: S$53,192
Annual Growth: 1.1% (2008)
Inflation: 6.5% (2008)
Major Industries: Manufacturing (particularly electronics, engineering, biomedical sciences and chemicals), financial and business services, and commerce.
UK Trade & Investment Country Profile: Singapore
Singapore is a model of economic development. From independence in 1965, it achieved almost uninterrupted growth averaging nearly 8% per annum for over three decades. By the 1990s, it had GDP per capita levels similar to many OECD countries and was acknowledged widely as one of Asia's 'tigers'. The contrast between Singapore and some of its regional neighbours is all the more striking given its size and lack of natural resources.
Until recently, Singapore had experienced few periods of economic difficulty. However, it was hit hard in 2001 by a downturn in its key global markets (particularly the US) and a collapse in demand for electronics goods. As a result, it experienced its worst recession since independence: GDP fell 2.4% after growing about 10% in 2000. Although the economy expanded by 4.1% in 2002, Singapore faced the SARS (Severe Acute Respiratory Syndrome) setback in 2003. The government handled the outbreak better than most, but the economic fallout was significant, particularly in the retail, tourism and consumer-services sectors.
Nevertheless, Singapore's economy has remained fundamentally sound. The following few years saw robust growth rates of between 7.3-9.3%, until the onslaught of the current global economic crisis. Given the openness of its economy (Singapore trades over 350% of its GDP), it was the first country in Asia to fall into recession in the third quarter of 2008 and GDP growth for 2008 came in at 1.1%, much less than the 4-6% initially forecasted. For 2009, official projections are now for the economy to contract by between 2 and 6% (official government forecast), while many economist recently revised their forecast upwards (media forecast at -3.6%). Inflation a key concern not so long ago - is now projected to be in the range of -0.5% to 0.5%.
