In 2018, Singapore's growth benefited from the strength of world trade, which led to a significant increase in its exports and industrial production.
However, according to the latest report released by Crédito y Caución, the main financial and transportation services center in Southeast Asia will face a moderation in its economic expansion in 2019 and 2020, due to the cooling of world trade and imports by China.
Singapore's per capita income and level of development meet OECD standards. The city-state's long-term growth strategy (the development of high-tech industries) has begun to bear fruit in the biomedical sector. However, its economy is vulnerable to high dependence on its trading partners and its focus on specific sectors such as electronics and pharmaceuticals.
“ Due to its high dependence on international trade and its integration into the Asian supply chain, Singapore is sensitive to the risks arising from an escalation in the trade war between China and the United States and the sharp slowdown in the Chinese economy ,” states the report released by the credit insurer. However, the effects of any destabilizing element should be limited due to the city-state's economic recovery capacity. Singapore remains one of the strongest states in the world in terms of sovereign risk and macroeconomic fundamentals. Its ample foreign exchange reserves and monetary policy make it unlikely that the city's exchange rate will be affected by changes in international investment patterns.
