The nation would remain ‘highly competitive’ despite its demographic decline.
This chart from Moody’s shows that Singapore’s real GDP growth could still beat other top-rated countries such as Australia, New Zealand and the United States despite its dampening economy.
The slowdown is mostly attributed to its declining population which is said to be in a similar manner as other advanced economies, which has already led to structurally lower growth performance compared with previous decades.
However, Moody’s noted that Singapore would remain highly competitive because of its long-term orientation of its policymaking.
“Since the early 1980s, the government has implemented several rounds of structural reform that have steered the economy from its previous strengths in lower value-added manufacturing towards electronics, the rapid expansion of its financial and IT sectors, tourism offerings and the introduction of biotech and pharmaceutical manufacturing, for example,” Moody’s said.
Do you know more about this story? Contact us anonymously through this link.