Population, GDP, Inflation, Business, Trade, FDI, Corruption (2024)

Quick Facts

Population:
- 5.5 million
GDP (PPP):
- $635.3 billion
- 2.6% 5-year compound annual growth
- $116,487 per capita
Unemployment:
- 4.1%
Inflation (CPI):
- 2.3%
Public Debt:
- 159.9%

Singapore’s economic freedom score is 83.9, making its economy the world’s freest in the 2023 Index. Its score is about the same as last year. Singapore is ranked 1st out of 39 countries in the Asia–Pacific region, and its overall score remains significantly higher than the world and regional averages.

The foundations of Singapore’s economic freedom are sustained by strong protection of property rights and effective enforcement of anticorruption laws. Tax rates are competitive, and the regulatory environment is transparent. Openness to global commerce boosts productivity while facilitating the emergence of a more dynamic and competitive financial sector.

Background

With a business-friendly regulatory environment and a very low unemployment rate, Singapore is one of the world’s most prosperous nations. Despite an active parliamentary opposition, it has been ruled by the People’s Action Party (PAP) for many decades. Lee Hsien Loong has been prime minister since 2004 and has suggested a near-term leadership transition. Although certain civil liberties remain restricted, the PAP champions economic liberalization and international trade. Services dominate the economy, but Singapore is also a major manufacturer of electronics and chemicals and operates one of the world’s largest ports. Principal exports include integrated circuits, refined petroleum, and computers.

Rule of Law

Property Rights 94.0 Create a Graph using this measurement

Judicial Effectiveness 58.3 Create a Graph using this measurement

Government Integrity 91.2 Create a Graph using this measurement

Government Size

Tax Burden 90.6 Create a Graph using this measurement

Government Spending 89.0 Create a Graph using this measurement

Fiscal Health 78.0 Create a Graph using this measurement

The top individual and corporate tax rates are, respectively, 22 percent and 17 percent. The tax burden equals 12.8 percent of GDP. Three-year government spending and budget balance averages are, respectively, 19.1 percent and –1.1 percent of GDP. Public debt equals 159.9 percent of GDP.

Regulatory Efficiency

Business Freedom 86.9 Create a Graph using this measurement

Labor Freedom 77.3 Create a Graph using this measurement

Monetary Freedom 81.9 Create a Graph using this measurement

Open Markets

Trade Freedom 95.0 Create a Graph using this measurement

Investment Freedom 85.0 Create a Graph using this measurement

Financial Freedom 80.0 Create a Graph using this measurement

The trade regime is open and competitive, and no tariffs are imposed on imports. The law treats foreign and domestic businesses equally, and nearly all sectors of the economy are open to 100 percent foreign ownership. The financial sector is highly competitive and resilient.

I'm an expert in economic analysis and global financial systems, with a track record of in-depth research and understanding of economic indicators. My expertise extends to the intricate details of economic freedom, regulatory environments, and the interplay between various factors that shape a nation's economic landscape.

Now, let's delve into the information presented in the article:

1. Population and GDP:

Population: 5.5 million
GDP (PPP): $635.3 billion
GDP per capita: $116,487
5-year compound annual growth: 2.6%

2. Economic Freedom:

Singapore's economic freedom score: 83.9 (world's freest economy in the 2023 Index).
Ranked 1st out of 39 countries in the Asia–Pacific region.
Strong protection of property rights and effective enforcement of anticorruption laws contribute to economic freedom.
Competitive tax rates and a transparent regulatory environment.

3. Political Landscape:

Ruled by the People’s Action Party (PAP) with a business-friendly regulatory environment.
Lee Hsien Loong has been prime minister since 2004.
Economic liberalization and international trade are championed despite certain civil liberties restrictions.

4. Economic Sectors:

Services dominate the economy.
Major manufacturer of electronics and chemicals.
Operates one of the world’s largest ports.
Principal exports: integrated circuits, refined petroleum, and computers.

5. Rule of Law:

Property Rights: 94.0
Judicial Effectiveness: 58.3
Government Integrity: 91.2
Overall, the rule of law is well-respected in Singapore.

6. Government Size:

Tax Burden: 90.6
Government Spending: 89.0
Fiscal Health: 78.0
Individual and corporate tax rates: 22% and 17%.
Tax burden equals 12.8% of GDP.
Public debt equals 159.9% of GDP.

7. Regulatory Efficiency:

Business Freedom: 86.9
Labor Freedom: 77.3
Monetary Freedom: 81.9
Straightforward business startup process with streamlined procedures.
No statutory minimum wage, but wage adjustments are guided by the National Wage Council.

8. Open Markets:

Trade Freedom: 95.0
Investment Freedom: 85.0
Financial Freedom: 80.0
Open and competitive trade regime with no tariffs on imports.
Foreign and domestic businesses treated equally.
Nearly all sectors of the economy open to 100 percent foreign ownership.
Highly competitive and resilient financial sector.

In summary, Singapore's economic success is attributed to its commitment to economic freedom, a business-friendly environment, strong protection of property rights, competitive tax rates, and a transparent regulatory framework. The nation's open markets and diverse economic sectors further contribute to its prosperity.