Singapore’s highly trade dependent economy is tightly correlated with global demand. Growth averaged 6.5% p.a. from 2000 to 2008 driven by strong global demand and a large influx of foreign workers—which caused the population to rise over 34%. The Singaporean economy continues to expand at a solid pace. Robust exports were supported by healthy global demand for pharmaceuticals and electronics, the latter driving demand for semi-conductors. Domestic demand is also holding firm as decent wage growth is supporting household consumption. Growth is forecast to remain between 2.5% to 3% over the next five years. But the trade fracas between the US and China (Singapore’s largest export market) could weigh heavily on Singapore’s export outlook and headline growth.
Singapore’s per capita GDP passed US$61,000 in 2018, superseding the majority of advanced economies, ranking 9th , in front of Australia and Denmark. Per capita GDP is expected to grow to over US$70,000 by 2022.