Singapore is a high-income economy with a gross national income of US$52,600 per capita, as

of 2017.  The country provides one of the world’s most business-friendly regulatory

environment for local entrepreneurs and is ranked among the world’s most competitive
economies.

In the decades after independence, Singapore rapidly developed from a low-income country to a
high- income country. GDP growth in the city-state has been amongst the world’s highest, at an
average of 7.7% since independence and topping 9.2% in the first 25 years.

Fluctuations in the global economy have slowed down economic expansion to 2% in 2016;
overall growth recovered to 3.6% in 2017. Value-added manufacturing, particularly in the
electronics and precision engineering sectors, remain key drivers of growth, as are the services
sector, particularly the transport and storage industries, which grew 5.3% year-on-year, and the
finance and insurance industries, which grew 6.3% year-on-year. Economic growth is expected
to moderate in 2018, with the government forecasting a range of 1.5% to 3.5%, projecting the
rate to be slightly above the middle of the forecast range.

In 2017, Singapore launched this regional finance hub as ‘Asia’s Infrastructure Exchange’: “the
go-to place where infrastructure demand and supply can connect, where infrastructure expertise
and financing can be obtained and infrastructure needs are met”. In its announcement, the
government highlights the country’s strong ecosystem, one that integrates infrastructure players
along the whole value chain – multilateral banks, private financiers, lawyers, accountants,
engineers and other professional services. The initiative, which will include the establishment of
an Infrastructure Office, also presents the World Bank Group Singapore Hub as an important
partner for the country - and the partnership strives to mobilize more financing for the delivery of
sustainable and inclusive infrastructure.

Another growth area: value-creating industries and jobs, where new products and services are
created from Singapore. With strong financial support from the government, the Skillsfuture
initiative aims to strengthen the nimbleness and flexibility of the workforce by providing
continuing education that deepens technical and managerial skills across sectors.  Government
spending on continuing education will nearly double, to more than S$1 billion yearly. 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably
open and corruption-free environment, stable prices, and a per capita GDP higher than that of
most developed countries. Unemployment is very low. The economy depends heavily on
exports, particularly of consumer electronics, information technology products, medical and
optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial
services sectors.

The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued
to grow since 2010. Growth in 2014-17 was slower than during the previous decade, at under 3%
annually, largely a result of soft demand for exports amid a sluggish global economy and weak
growth in Singapore’s manufacturing sector.