After a important activity in 2004, the growth became more moderate in 2005. Annual GDP growth rate was 8.4% in 2004 and 3.9% in 2004. The IMF forecasts a 4.5% growth in 2006.
The neighbouring countries are questioning Singapore economy's competitiveness : electronics production is developing in China, and Hong Kong and Shanghai are becoming the main Asian financial centres. However, Singapore remains a very developed and prosperous economy. Labour force is qualified, public funds are healthy, political stability is strong and banking system is successful. Singapore is Asia's largest harbour and is used as a trading hub for numerous Asian countries.
The agriculture sector is almost inexistent, and the great majority of food-processing products are imported. Singapore does not hold mining natural resources. Singapore economy is diversified and relies on four major activity sectors: electronics (60% of non petroleum exports are electronic products), petrochemicals (20% of industrial production), IT and logistics. Biotechnologies et pharmaceutical industry are in a full swing. The financial and banking sector has also a global scale.
Singapore is very largely open to foreign trade and is a member of WTO, ASEAN and APEC. The island's external trade represents nearly three times its GDP. Singapore is a regional hub: 40% of exports are in fact re-exports. Singapore's main trade export partners are Malaysia, the United States and Hong Kong.
Its main import partners are Malaysia, the United-States and Japan. The main imported products are electronic equipment, machinery, hydrocarbons and chemical products.
