Singapore

Economic and political outline

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

Economic indicators

Singapore 's economy has become increasingly resilient to changing global conditions, supported by pragmatic macroeconomic management and ongoing structural reforms.

The real GDP growth is expected to slow down from 7.7% in 2007 to 4.5% in 2008 as a result of the weakening global economic outlook. The economy will grow by 5% in 2009.

The current-account surplus will fall as a percentage of GDP in 2008-09, but will remain substantial both relative to GDP and in US dollar terms. The unemployment rate was 1.7% in 2007.

The Singapore dollar will continue to appreciate against the US dollar, in accordance with the exchange-rate policy aims of the Monetary Authority of Singapore (the central bank).The inflation rate touched at 7.5% in April'2008.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	107.41	116.70	132.16	153.49e	166.17e
GDP (constant prices, annual % change)	8.8	6.6	7.9	7.5e	5.8e
GDP per capita (USD)	25,329.69	26,879.15	29,917.20	34,152.46e	36,341.85e
General government balance (in % of GDP)	6.1	7.8	6.4	5.5e	5.4e
Inflation rate (%)	1.7	0.5	1.0	1.7e	1.7e
Unemployment rate (% of the labor force)	3.4	3.1	2.7	2.6	2.6
Current Account (billions USD)	21.54	28.61	36.29	41.40e	42.21e
Current Account (in % of GDP)	20.1	24.5	27.5	27.0e	25.4e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	2.7	2.6	2.6

Source:

Main sectors of industry

The agriculture sector is almost inexistent, 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 66.3% to the GDP and the industrial sector around 33.7% (Year 2007 estimates).

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 . 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.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	12.5	10.2	6.8
Value added (in % of GDP)	0.1	34.7	65.2
Employment by sector (in % of total employment)	0.3	29.5	69.6

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.79	1.74	1.69	1.66	1.59

Source: World Bank - World Development Indicators

Foreign trade in figures

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	121,958	132,173	168,100	194,367	n.c.
Exports of goods (millions USD)	140,776	161,740	201,026	232,257	n.c.
Imports of services (millions USD)	33,389	39,729	50,006	54,260	n.c.
Exports of services (millions USD)	29,549	36,263	46,778	51,308	n.c.
Imports of goods and services (in % of GDP)	176.2	186.1	203.0	214.8	220.9
Exports of goods and services (in % of GDP)	193.2	214.3	230.6	244.3	252.6
Trade Balance (millions USD)	18,818	29,567	32,926	37,890	n.c.
Trade Balance (including service) (millions USD)	14,978	26,101	29,698	34,938	n.c.
Current Account (millions USD)	11,918	22,317	26,318	33,212	n.c.
Current Account (in % of GDP)	13.5	24.2	24.5	28.5	n.c.
Foreign trade (in % of GDP)	369.5	400.4	433.6	459.1	473.5

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Malaysia	13.1%
United States	10.2%
Hong Kong	10.0%
China	9.7%
Indonesia	9.2%

Main suppliers (% of imports)	2006
Malaysia	13.1%
United States	12.7%
China	11.4%
Japan	8.3%

Source: 2006

Main products

Main exports (% of exports)	2006
Electrical machinery and equipment	38.6%
Machinery and mechanical appliances	17.9%
Mineral fuels, mineral oils	13.1%
Organic chemicals	5.1%

Main imports (% of imports)	2006
Electrical machinery and equipment	34.1%
Mineral fuels, mineral oils	18.8%
Machinery and mechanical appliances	16.3%
Photographic, cinematographic, measuring and medical instruments	3.1%
Aircraft, spacecraft	2.5%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of 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
Online newspapers: Online newspapers in 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