Tiger in action

Singapore is famous for its steady growth rate of GDP and a booming foreign trade. The country, often called "young tiger" has managed to evolve its exports from labor-intensive to high value-added products.

Since gaining independence in1965, the Singaporean economy has grown rapidly and as a result the country now claims one of the highest GDP per capita in the world: USD 36,900. GDP Growth Rate averaged 5.12 % from 2007 until 2015, Statistics Singapore reported. Due to the ongoing dynamic economic development, this average rate is expected to increase to USD 38,800 in 2020.

The economy depends heavily on foreign trade; both from port activities and from exports of electronic components and refined oil. The country is a leading foreign direct investment recipient due to its status of one of the freest, most competitive and most business-friendly economies in the world.

Fiscal policy is directed primarily at promoting long-term economic growth, rather than cyclical changes or distributing income. As a result of its healthy fiscal position and consistent budget surpluses over the years, Singapore has attained a high level of foreign reserves and the strongest sovereign credit rating for long-term foreign-currency debt in Asia.

Over the years, the composition of Singapore's exports has evolved from labor-intensive to high value-added products, such as electronics, chemicals and biomedicals. The importance of services to the Singapore economy also grew, as evidenced by the increasing share of the financial and business sectors of the economy.

Singapore is also an important financial center. The domestic banking and insurance industries have been liberalized to attract more foreign investors. Various initiatives have been implemented to give fund managers greater access to domestic funds, to develop the debt market and to overhaul corporate governance. These initiatives together with Singapore's political and macroeconomic stability, excellent telecommunications and infrastructure, strategic geographical location and a skilled and educated workforce have contributed to Singapore's rapid development into a dynamic business and financial hub in Asia.