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Brief Introduction to Singapore Economy

This write-up will give you a brief introduction to Singapore economy. Leaf through to find out the reason behind the Singapore economy’s overall success. The factors that are mentioned in this write-up have played an elementary role in the development of Singapore’s economy.

The last couple of decades have witnessed tremendous growth in the Singapore economy. Now this economy is being appreciated for many of its qualities. The reviews says that it is one of the best place to start a new business in. This opinion has its basis in the policies implemented by the government to facilitate fast-track Singapore company registrations.

Singapore has one of the strong economies. Currently it holds 3rd position in the list of most globalised economies from all over the world. It is also rated as one of the wealthiest nations in the world. Still an average Singaporean believes in saving his money for the rainy days. Nevertheless, this habit encouraged by the government to facilitate social safety net for all has resulted in more than average saving rates and sustainable economy.

Stable political environment has also contributed to the growth of economy. Successive regimes have created a trade-oriented market economy. Singapore government is intolerant towards corruption and by implementing low taxes has successfully attracted the entrepreneurs and global finance.

Singapore’s pro-business outlook has also seduced a multitude of foreign investors and business houses, giving it a solid economic standing in the global finance. It takes a few days to form a Singapore company which is a novel experience for the entrepreneurs coming from the rest of the world. Singapore taxation system offers incentives, tax exemptions and low tax rates for newly incorporated companies. It has also helped in increasing the number of companies incorporation in Singapore.

The geographical location of this island nation has also contributed its share in the success. It is a great place for foreign companies interested in Asian markets, to establish a base to keep in touch of these markets.

One of the strong points of Singapore economy is its well trained and multilingual workforce. A large percentage of this workforce is proficient in English and that makes Singapore an attractive destination for the multinationals. In the last 2 decades, the rate of unemployment has declined from 4.0% to 1.9% in 2013.

The recession that originated in the USA really shook the world economies. However, Singapore economy recovered faster than the rest of the world. Today, Singapore economy is a major source of foreign direct investment for other economies.

According to the DBS (Development Bank of Singapore Limited), the Singapore GDP growth forecasts for year 2014 have shown more prospects. In 2013, Singapore economy achieved 3.7% of economic growth which was expected to be around 2.9%. The third quarter of 2013 gave a helping hand and the rise in industrial production brightened the prospects. Especially, the month of September came true with its promises of prosperity.

In 2014, the economic growth is expected to achieve the rate of 4.0%. There is a positive feeling in the market that the services, manufacturing and construction sectors will change their gears soon and further boost the economy.

The market trends show that the Singapore’s economy will maintain its upward trend even though the economic slowdown has not yet released its grip completely on the global economy. GDP of Singapore is expected to grow at a healthy rate during the rest of the quarters of 2014.

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