As a country with very little space and almost no natural resources, Singapore’s economy focused on global trade and developing its specialized and highly educated workforce. With many major firms opening branches in the city, the financial sector has experienced a significant boom with export of financial service more than doubling over the last ten years. The insurance industry has also followed suit, more than doubling its export of services over the years.
To facilitate the need for advanced infrastructure in trade and logistics, the country had to import large amounts of raw material that it is unable to procure by itself. This is evident as the import of goods and services as a percentage of its GDP being one of the highest in the Asia Pacific region.
Due to the recent rise of China and growing competition from the other ASEAN countries, trade in Singapore has slowed down significantly to one of the slowest export growth rates in the region. This slowdown was followed by a decrease in demand for materials and goods resulting in a decrease in import trade growth as well.