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FOREIGN TRADE
International trade in Singapore as a proportion of total local output is considered without parallel in modern history. Merchandise exports have averaged over 130% of GDP since the mid-1980s. At the same time, services exports play a very significant role. One important feature of Singapore's trade performance has been the changing composition of exports to progressively higher capital and skill intensive products.
The total value of exports and imports were at 144,134 and 127,898 million dollars respectively in the year 2003 reflecting a current account balance of 18,704 million dollars in the same year.
The trade in goods as a percentage share of total GDP was at 297.8 in the year 2003.
The foreign reserve has reached at $ 114.9 billion in November 2005.
Macro-Economic Policies In Singapore Economy
A sound macroeconomic policy is being undertaken in the recent years, which aims at maintaining a conducive environment for long-term investment in the economy.
Fiscal policy in Singapore is a means to promote long-term economic growth, rather than cyclical adjustment or the distribution of income. The government has taken necessary steps for job creation and free market competition.
Singapore's fiscal policy has contributed to its high savings rate. Gross national savings rose from a 11% of GNP in 1965 to over 50% since 1995. Singapore's high domestic savings rate has allowed it to achieve one of the highest investment rates in the world without having to incur foreign debt.
Because of Singapore's healthy overall fiscal position,
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it has ensured price stability and preserving confidence in the domestic currency.
"Singapore", The Financial Hub In The World
In the late 1960s Singapore's developed as an international financial center. In recent years, its sound economic and financial fundamentals, conducive regulatory and business environment, strategic location, skilled and educated workforce, excellent telecommunications and infrastructure and high living standards have attracted many reputable international financial institutions to set up operations in Singapore
There is a large and diversified group of local and foreign financial institutions, numbering more than 500, located in Singapore and offering a wide range of financial products and services. These include trade financing, foreign exchange, derivatives products, capital market activities, loan syndication, underwriting, mergers and acquisitions, asset management, securities trading; financial advisory services, and specialized insurance services. For which in 2004, the World Economic Forum Global Competitiveness Report ranked Singapore among the top ten most sophisticated financial markets in the world.
CONCLUSION
Attaining the highest competitiveness is a fundamental tenet of Singapore's economic philosophy. Singapore is ranked the third most competitive economy by the World Competitiveness Yearbook 2005 and the sixth most competitive economy by the Global Competitiveness Report 2005-2006. The global competitiveness report 2005-06 by the world economic forum ranks Singapore sixth in its widely quoted Growth Competitiveness Index (GCI) and fifth in the Business Competitiveness Index (BCI).
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