Singapore

Singapore GDP per Capita

*Update in April, October each year*

According to IMF, Singapore's GDP per capita is estimated to be USD 89,370 in 2024, making it a high-income economy, and is projected to be USD 109,060 in 2029.

However, Singapore's manpower shortage is becoming more acute. With the declining birth rate and aging population, future population growth will depend on immigration. Currently, more than 70% of Singapore's labor force is employed in the service sector, with the rest in the manufacturing and construction sectors. As the business center of the ASEAN economies, Singapore will continue to tap overseas skilled manpower to support its industrial development.

Singapore CPI

*Update in April, October each year*

In Singapore, CPI only covers consumer spending by resident households, excluding non-consumer spending such as purchases of housing, stocks and other financial assets, and income tax.

In 2024, Singapore's CPI growth slowed down, with the main turnaround occurring in June, from a high of 3.4% in May to 2.4% in June, and the core CPI from June to August also declined to 2.5~2.9%. CPI's slowdown is mainly due to the slowdown in private transportation and retail inflation, but electricity and natural gas inflation still remain above 6%. With relatively stable global energy, food and commodity prices slowing down import costs, and a strong Singaporean dollar curbing import inflation, Singapore's headline inflation moderated from January to August 2024, with the headline inflation rate reaching 2.2% in August, the lowest level since April 2021, while the Middle East conflict continues to rise. However, the escalating conflict in the Middle East and rising geopolitical risks will have a key impact on oil prices going forward. Therefore, despite expectations of a continued slowdown in Singapore's inflation, volatility in international energy prices remains one of the upside risks to Singapore's inflation.

Singapore PPI

*Update in April, October each year*

Singapore's PPI has been relatively stable since 2024, remaining in the range of 101~102 in the first half of 2024, with the PPI dropping back below 100 from July onwards, and in August 2024, Singapore's PPI stood at 95.7.

When the Singapore government compiles the PPI, it also splits the PPI into 3 facets, namely the Domestic Supply Price Index (DSPI), the Manufacturing Sector Producer Price Index (SMPPI), and the Service Sector Producer Price Index (SPPI). The three indices focus on different areas: the DSPI focuses on domestic commodities, the SMPPI focuses on the manufacturing sector, and the SPPI covers the service sector.

The SPPI covers the service sector, which accounts for the largest share of Singapore's economy. After breaking down the SPPI, we can see that most of the categories are within reasonable levels, with the exception of transportation-related PPIs (air and sea freight), which are lower.

Singapore Foreign Direct Investment (FDI)

*Update in April, October each year*

In Singapore, FDI is an investment by a direct investor residing in another economy that owns 10% or more of the ordinary shares or voting rights of an enterprise in Singapore.

Singapore has been the largest FDI destination in ASEAN due to its stable political environment, open economy, high-quality workforce and favorable geographical location. At the same time, FDI plays an important role in driving Singapore's economic growth.

At USD 159.7 billion in 2023, Singapore is the world's third-largest FDI recipient, significantly ahead of Hong Kong at USD 47 billion and closing in on China at USD 3.6 billion. In the aftermath of the epidemic, there has been a significant shift in the international investment landscape, while geopolitical risks in the US and China have led multinational corporations to choose to shift their supply chains and re-locate their operations. By setting up headquarters in Singapore, companies are not only able to position themselves in the ASEAN supply chain, but are also able to further capitalize on ASEAN business opportunities.

In 2023, for the first time, Singapore will overtake Hong Kong as Asia's largest financial center in terms of the size of assets under management it attracts. After the passage of Hong Kong's national security law, multinational corporations have become more skeptical of Hong Kong's security and independence, and many foreign investors have withdrawn from Hong Kong and moved to Singapore to set up their headquarters. Due to its unique geographical location and governance, Singapore has focused more on multilateral trade and development, while maneuvering between the U.S., China and East Asia.

Singapore International Trade

*Update in April, October each year*

As an ASEAN hub and a major transshipment point, Singapore's economy is highly dependent on international trade, with its total trade amounting to three times its GDP.

In the first half of 2024, Singapore's total international trade amounted to SGD 631.1 billion (about USD 473.3 billion), of which SGD330.6 billion (about USD 247.9 billion) was exported, SGD300.6 billion (about USD 225.4 billion) was imported, and the trade surplus/deficit amounted to SGD30.0 billion (about USD 22.5 billion).

In the first half of 2024, Singapore's major trading partners were China, Malaysia and the United States. As a major transshipment port in Asia, about 70% of Singapore's trade comes from the Asian region.

The top four exporting economies are China, Malaysia, Indonesia and the United States, while the top four importing economies are Taiwan, China, the United States and Malaysia.