Singapore: External Accounts

Background:

Singapore's economy is highly susceptible to fluctuations in the global economy, with an export-to-GDP ratio of nearly 200% in 2009 (including both goods and services exports). Singapore's goods exports are typically classified into two categories, domestic exports (exports of locally produced goods, including those of foreign origin that have been substantially changed through local production) and re-exports. Domestic exports accounted for 51% of total exports in 2009, with re-exports compromising the other 49%. Singapore's key domestic exports include petroleum products, chemicals, pharmaceuticals, electronic components, telecommunication equipment and transport equipment. Electronics exports constituted 36.6% of Singapore's non-oil domestic exports (NODX) in 2009, and 25% of total domestic exports. Oil makes up a further 29% of total domestic exports. Multinational corporations contribute over two-thirds of manufacturing output and exports to Singapore's economy. Services exports, while much smaller than goods exports, are nonetheless an important factor in Singapore's economy, equivalent to roughly 50% of GDP. Transportation and travel services are by far the most important sectors, followed by financial and business management services. The country's main imports are aircraft, crude oil and petroleum products, electronic components, consumer electronics, industrial machinery, motor vehicles, chemicals, food and beverages, electricity generators, iron and steel.