Singapore

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Singapore's economy was particularly affected by the international financial crisis, because of its very extreme financialization, and the very large extent of openness, and thus its dependence on international trade. While GDP growth was above 7.5% from 2004 to 2007, it dropped to around 1% in 2008 and was very reduced in 2009 because of the crisis. The country should be back on the growth track in 2010-2011.

The GDP percentage of the current-account surplus should drop in 2009-2010. The Singaporean dollar will continue to appreciate in relation to the American dollar, in accordance to the objectives of the exchange rate policy of the Monetary Authority of Singapore (the Central Bank).

To maintain its competitive position despite the increase in salaries, the government seeks to promote activities with high added value (like biotechnology, research and development and pharmaceutical products), in the manufacturing and services sectors.

After a long period of full employment, the level of unemployment rose to 4.6% in 2003, then dropped to 3% in June 2008, because of the decrease in economic growth. The current financial crisis, together with structural economic changes (relocation of unskilled labor) has caused a new rise in unemployment. However, the level of wealth per capita is one of the highest in the region.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	139.18	166.95	181.94e	176.54	180.81
GDP (constant prices, annual % change)	8.4	7.8e	1.1e	-10.0e	-0.1
GDP per capita (USD)	31,621e	36,384e	38,972	37,170e	37,416
General government balance (in % of GDP)	7.5	8.7	5.0	0.6	-0.8
Inflation rate (%)	1.0	2.1	6.5	0.0	1.1e
Unemployment rate (% of the labor force)	2.7	2.1	3.1	7.5	8.6
Current Account (billions USD)	35.38	39.21e	26.98	23.07e	20.18
Current Account (in % of GDP)	25.4	23.5e	14.8	13.1e	11.2e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Singapore's economy is highly industrialized. The biggest sector is the manufacturing sector, followed by the wholesale and retail sector, business services, transport and communication and financial services. The electronics and petrochemical industries are dominant. The services sector contributes more than two-thirds of the GDP and the industrial sector around one-third. The primary sector is almost nonexistent (except for the cultivation of orchids, vegetables and fish for aquariums). Singapore does not have any mineral resources.

Singapore is a regional trading hub. The Port of Singapore is amongst the world's biggest and is the second traffic center for container transshipment, behind Hong Kong.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	0.0	29.5	69.6
Value added (in % of GDP)	0.1	31.1	68.8
Value added (annual % change)	0.0	7.3	7.5

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Singapore Dollar (SGD) - Average annual exchange rate for 1 USD	1.69	1.66	1.59	1.51	1.41

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 87.1/100
Position:: free
World Rank:: 2 out of 179
Regional Rank:: 2 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

A real warehouse, Singapore is highly dependent on external trade. The strategy adopted by the country is to promote export while being careful to minimize barriers to imports. Singapore signed the Asian Free Trade Area agreements (AFTA in the ASEAN context) and bilateral agreements.

Singapore imports machinery and equipment, mineral fuels, chemical products, food commodities and consumption goods from Malaysia, United States, China, Japan, South Korea, Indonesia and Saudi Arabia. The country exports machinery and equipment (electronic), consumption goods, pharmaceutical products and mineral fuels to Malaysia, Indonesia, Hong Kong, China, the United States, Japan and Australia.

Singapore showed a trade surplus in 2008, a trend which should continue in the coming years, but at a lower rate.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	132,266	168,330	195,477	231,855	254,036
Exports of goods (millions USD)	161,702	199,393	232,512	275,288	303,136
Imports of services (millions USD)	40,081	50,143	55,630	63,744	72,419
Exports of services (millions USD)	36,288	46,804	52,940	61,100	69,829
Imports of goods and services (in % of GDP)	185.0	200.1	209.8	216.3	202.0
Exports of goods and services (in % of GDP)	212.5	225.4	238.5	246.2	230.9
Trade Balance (millions USD)	29,436	31,063	37,036	43,433	49,099
Trade Balance (including service) (millions USD)	25,643	27,725	34,345	40,789	46,510
Foreign trade (in % of GDP)	397.4	425.5	448.3	462.5	433.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Malaysia	12.9%
Hong Kong	10.5%
Indonesia	9.8%
China	9.7%
United States	8.9%
Japan	4.8%
Thailand	4.1%
Australia	3.7%
South Korea	3.5%
India	3.3%
United Kingdom	2.7%
Vietnam	2.2%
Philippines	2.0%
Germany	2.0%
Netherlands	1.9%
France	1.6%
Panama	1.3%
United Arab Emirates	1.2%
Canada	0.7%
Liberia	0.6%
See more countries	48.2%

Main suppliers (% of imports)	2007
Malaysia	13.1%
United States	12.4%
China	12.1%
Japan	8.2%
Indonesia	5.6%
South Korea	4.9%
Saudi Arabia	3.3%
Thailand	3.2%
Germany	3.1%
France	2.4%
India	2.2%
Philippines	2.2%
Kuwait	1.9%
United Kingdom	1.8%
United Arab Emirates	1.7%
Qatar	1.6%
Hong Kong	1.5%
Australia	1.2%
Italy	1.2%
Netherlands	1.1%
See more countries	48.6%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	36.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	17.4%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	13.8%
Organic chemicalsOrganic chemicals	4.7%
Plastics and articles thereofPlastics and articles thereof	2.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.4%
Pharmaceutical productsPharmaceutical products	1.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Articles of iron or steelArticles of iron or steel	0.9%
Iron and steelIron and steel	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Copper and articles thereofCopper and articles thereof	0.4%
Rubber and articles thereofRubber and articles thereof	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Ships, boats and floating structuresShips, boats and floating structures	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.3%
Tin and articles thereofTin and articles thereof	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.1%
Glass and glasswareGlass and glassware	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Nickel and articles thereofNickel and articles thereof	0.1%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
See more products	25.0%

Main imports (% of imports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	31.4%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	20.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	16.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.9%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.3%
Organic chemicalsOrganic chemicals	1.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.7%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.7%
Plastics and articles thereofPlastics and articles thereof	1.6%
Articles of iron or steelArticles of iron or steel	1.5%
Iron and steelIron and steel	1.3%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Ships, boats and floating structuresShips, boats and floating structures	0.9%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Copper and articles thereofCopper and articles thereof	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.5%
Pharmaceutical productsPharmaceutical products	0.5%
Rubber and articles thereofRubber and articles thereof	0.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.5%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Tin and articles thereofTin and articles thereof	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Glass and glasswareGlass and glassware	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.2%
Nickel and articles thereofNickel and articles thereof	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
See more products	27.0%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Trade and Industry (MTI)
Ministry of National Development (MND)
Ministry of Manpower (MOM)
Ministry of Home Affairs (MHA)
Singapore Economic Development Board (EDB)
Statistical Office: Department of Statistics
Central Bank: The Monetary Authority of Singapore (MAS)
Stock Exchange: Stock Exchange of Singapore
Search Engines: Technofind
Yahoo! Singapore
Economic portals: Economy watch

Political outline

Executive Power: President is the chief of the state. The role of the president is largely ceremonial. Following legislative elections, leader of majority party or leader of majority coalition is usually appointed Prime Minister by the President as head of the government. Prime Minister enjoys the all the executive powers which include implementation of the law in the country and running the day-to-day affairs.
Legislative Power: The legislature is unicameral in Singapore . The Parliament consists of 84 seats: 9 members of parliament (MPs) are directly elected from single-member constituencies, and 75 are elected in teams of between four and six to represent the 15 Group Representation Constituencies (GRCs). In addition, there are up to nine nominated members.
Parliament is supreme to all other government. The government is dependent on the support of the parliament, often expressed through a vote of confidence.
Main political parties: Though Singapore is a multi-party nation, but practically it has been dominated by one-party which has been in power since its independence. It is PAP (People's Action Party).

Opposition parties are allowed, but are widely considered to have no real chance of gaining power. Some of the important opposition parties are:

SDA (Singapore Democratic Alliance) – a common opposition alliance to fight PAP

SDP (Singapore Democratic Party) – a liberal democratic party

WP (Workers' Party of Singapore) – a party of industrial workers.

For more details, consult the list of the political parties in Singapour.
Current political leaders: President: S. R. NATHAN (since September 1999, re-elected in August 2005) – non-partisan
Prime Minister: LEE Hsien Loong (since August 2004) - PAP
Next election dates: Presidential: August 2011
Parliamentary: May 2011

Indicator of freedom of the press

World Rank:: 144/173
Evolution:: 3 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Partly Free
Political freedom:: 5/7
Civil liberties:: 4/7

Map of freedom 2007
Source: Freedom House

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