Capital City: Singapore
	It is %T:%M %A in Singapore

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Economic trends

Singapore's strategic location on major sea lanes, coupled with pro-foreign investment and export-oriented policy framework has made it an important economy in Southeast Asia disproportionate to its small size. The GDP growth rate was 7.9% in 2006 and 7.5% in 2007. IMF forecasts a growth rate of 5.8% for the year 2008. Private consumption and investment will be the main drivers of growth. Consumer price inflation (1.7% in 2007) remains low. Singapore is facing tough competition form its neighbouring countries, with electronics production shifting to low-cost China and the financial sector developing more strongly in Hong Kong and Shanghai. The unemployment rate is around 2.7%.

Main branches of industry

The agriculture sector is almost inexistent, and the great majority of food products are imported. Singapore does not have any mineral resources. Singapore economy is diversified and is dependent on four major activity sectors: electronics (40% of the industrial production), petrochemicals (20%), information technology, and logistics. The services sector contributes around 66% to the GDP. Singapore is used as a regional trading hub. The Port of Singapore is among the world's busiest and ranks second globally as a centre for containerized transhipment traffic, after Hong Kong. Multinational corporations account for more than two-thirds of manufacturing output and direct export sales. To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities (like biotechnology, research & development, and pharmaceutical) in the manufacturing and services sectors.

International trade

Singapore is highly open to foreign trade and is a member of WTO, ASEAN and APEC. The island's foreign trade is equal to nearly three times its GDP. Nearly 50% of exports are in fact re-exports. The top three export partners are: Malaysia, the USA, and Indonesia. The commodities mainly exported are electric & electronic equipment, machinery, mineral fuels & oils, and organic chemicals. The top three import partners are: Malaysia, the USA and China. Singapore mainly imports electronic equipment, mineral fuels & oils, machinery, optical & measuring instruments, and precious stones.