Singapore's Economic Outlook for 2015

March 18, 2010Singaporeby EconomyWatch Content

Singapore Economy

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Singapore’s Economic Forecast

Singapore is the 40th largest economy in the world according to both GDP (current prices, US dollars) and GDP (PPP). In 2010, Singapore’s GDP (current prices, US dollars) was US$222.699 billion and its GDP (PPP) was US$291.937 billion.

Singapore’s GDP (PPP) grew by 15.56 percent from 2009 to 2010. This reflected the strong overall economic recovery from the 2008 global financial crisis where GDP (PPP) had only increased by 3.70 percent in 2008 and 0.14 percent in 2009. Prior to the financial crisis, the average GDP (PPP) growth rate from 2003 to 2007 was 11.268 percent. From 2011 to 2016, Singapore’s GDP (PPP) growth will fall between 5.75 to 6.42 percent. By the end of 2016, Singapore’s GDP (PPP) is expected to reach US$413.46 billion.

Singapore also has the third highest GDP (PPP) per capita in the world. In 2010, Singapore’s GDP (PPP) per capita was US$56,521.73 – behind Qatar and Luxembourg. With the Singaporean government recently revaluing its currency upwards by 1.3 percent in order to contain imported inflation, Singaporeans are expected to be wealthier with its GDP (PPP) per capita increasing by 4.60 percent in 2011. From 2012 to 2016, Singapore’s GDP (PPP) per capita is expected to rise by 3.94 to 4.14 percent annually and reach US$72,178.82 by the end of 2016.

Although Singaporeans do generally enjoy fairly low inflation rates, higher costs in transport, housing and food have caused inflation rates to rise significantly between 2007 and 2010. From 2002 to 2006, Singapore’s average inflation rate (average consumer price change) was 0.6428 percent. However, 2007 to 2010 saw an average inflation rate (average consumer price change) of 3.03 percent, peaking at 6.612 percent in 2008.

In 2011, inflation (average consumer price change) in Singapore is expected to be hit 3.3 percent. The next five years should see inflation rates gradually decrease and reach 1.976 percent by 2016.

Singapore had the 8th largest current account balance in the world for 2010 at US$49.454 billion. In the aftermath of the 2008 global financial crisis, Singapore’s current account balance had fallen from US$48.478 billion in 2007 to US$27.618 billion in 2008. However, the current account balance has since returned to pre-financial crisis levels and is expected to remain at similar levels for the next five years. By 2016, Singapore’s current account balance is expected to be US$47.518 billion.

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