Singapore’s Trade Pattern (Year 2004 – 2008) The economy of Singapore is a developed country and highly developed state capitalist mixed economy. It has an open business environment, relatively corruption-free and transparent, stable prices, and one of the highest per capita gross domestic products (GDP) in the world. Its innovative yet steadfast form of economics that combines economic planning with free-market has given it the nickname the Singapore Model.
Exports, particularly in electronics and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Singapore’s strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia disproportionate to its small size. The Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy framework, combined with state-directed investments in strategic government-owned corporations.
Singapore’s economic strategy proved a success, producing real growth that averaged 7. 8% from 1965 to 2009 Data Analysis Year| 2004| 2005| 2006| 2007| 2008| GDP (current US$ Billion)| 109. 66| 120. 94| 139. 18| 166. 95| 181. 95| Exports of goods andservices (current US$ Billion)| 246. 14| 285. 96| 338. 80| 384. 26| 426. 38| Imports of goods andservices (current US$ Billion)| 218. 36| 251. 40| 296. 74| 331. 38| 391. 68| Exports of goods andservices (% of GDP)| 224. 45| 236. 45| 243. 44| 230. 17| 234. 34| Imports of goods andservices (% of GDP)| 199. 12| 207. 87| 213. 21| 198. 49| 215. 7| Trade (% of GDP)| 423. 57| 444. 32| 456. 65| 428. 66| 449. 61| (i) Exports of goods and services (current US$) From the table above, we see that the export value of 2004 grew from $246,139,915,991. 24 in year 2004 gradually into $426,378,465,616. 26 in year 2008, indicating a 173% increase in value over the period of 5 years. (ii) Imports of goods and services (current US$) In 2004, the value of Singapore’s imports of goods and services is $218,361,060,166. 83 and it appears to have a gradual and stable growth in its import all the way to year 2008, where its import value reaches $391,675,971,138. 7, showing 179% increase in its import value within 5 years. Singapore shows an average increase imports value worth of 40 billion on a year to year basis from 2004 to 2008. (iii) Exports of Goods and Services (% of GDP) From 2004 to 2006, Singapore’s Export of goods and services (% of GDP) increases from 224. 45% to 243. 44%. But by 2007, the numbers fell by 13. 27 % to 230. 17%, and eventually climbed back up to 234. 34% in 2008. (iv) Imports of Goods and Services (% of GDP) Just like export, Singapore’s imports of goods and services (% of GDP) took a climb for three consecutive years from 2004 to 2006, increasing from 199. 2% to 213. 21 %, showing an increase of 14. 09% over the 3 years span. But in 2007, Singapore’s imports of goods and services (% of GDP) fell by 14. 72% to 198. 49% and eventually climbed back up to 215. 27%, in 2008, 2. 06% higher than the previous peak of 213. 21% in 2006. (v) Trade (% of GDP) Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product. The trade of Singapore as a percentage of GDP in another way, measures how “open” is Singapore’s trade. Singapore’s trade, as tabulated, appears to be 432. 7% in 2004, and gradually it increases to 456. 65% in 2006. However, the country appears to be less open in 2007, where its trade dropped by 27. 99% to 428. 66% from the year before. Nonetheless, in year 2008, the country once again widened its trade, jumping from 428. 66% from 2007 to 449. 61% in 2008. References: 1. The World Bank. Indicators: Data. Retrieved from: http://data. worldbank. org/indicator 2. Singapore Trade, Exports and Imports. In Economy, Investment & Finance Reports. Retrieved from Economy Watch: http://www. economywatch. com/world_economy/singapore/export-import. html
