The Economy of Singapore

Overview

Singapore has an open economy with strong service and manufacturing sectors and excellent international trading links derived from its entrepot history. A slump in global demand for electronics slowed Singapore's export growth in 1996, and as a result, real GDP grew 6.5%, down from 8.9% in 1995. The government predicts growth will be in the 5%-7% range in 1997. Rising labor costs continue to be a threat to Singapore's competitiveness, and the government's strategy to address this problem includes increasing productivity, improving infrastructure, and encouraging higher value-added industries. In applied technology, per capita output, investment, and labor discipline, Singapore has key attributes of a developed country.

GDP

GDP: purchasing power parity - $72.2 billion (1996 est.) GDP - real growth rate: 6.5% (1996) GDP - per capita: purchasing power parity - $21,200 (1996 est.) GDP - composition by sector:
• agriculture: NEGL%
• industry: 28%
• services : 72%

Inflation rate - consumer price index

• 1.3% (1996)

Labor Force

• total 1.801 million (1996 est.)
• by occupation
  • financial, business, and other services 33.5%
  • manufacturing 25.6%,
  • commerce 22.9%
  • construction 6.6%
  • other 11.4% (1994)
• Unemployment Rate: 2.7% (1996 est.)

Budget

• revenues: $18.5 billion
• expenditure: $13.5 billion, including capital expenditures of $4.4 billion (FY96/97
• est.)

Industries

petroleum refining, electronics, oil drilling equipment, rubber processing and rubber products, processed food and beverages, ship repair, entrepot trade, financial services, biotechnology

• Industrial production growth rate: 7% (1996 est.)
• Electricity - capacity: 4.51 million kW (1994)
• Electricity - production: 22.1 billion kWh (1995)
• Electricity - consumption per capita: 7,002 kWh (1995)

Exports

• total value: $144.8 billion (1996 est.)
• commodities: computer equipment, rubber and rubber products, petroleum products, telecommunications equipment
• partners: Malaysia 19%, US 18%, Hong Kong 9%, Japan 8%, Thailand 6% (1995)

Imports

• total value: $151.1 billion (1996 est., including goods for reexport)
• commodities: aircraft, petroleum, chemicals, foodstuffs
• partners: Japan 21%, Malaysia 15%, US 15%, Thailand 5%, Taiwan 4%, South Korea 4% (1995)

Miscellaneous

• Debt - external: $NA
• Economic aid: $NA
• Currency: 1 Singapore dollar (S$) = 100 cents
• Exchange rates: Singapore dollars (S$) per US$1 - 1.4061 (January 1997), 1.4100 (1996), 1.4174 (1995), 1.5274 (1994), 1.6158 (1993), 1.6290 (1992)
• Fiscal year: 1 April - 31 March