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Singapore is a highly developed and successful free market economy and enjoys an open and corruption-free environment, stable prices, and a high per capita GDP. The economy depends a lot on exports, entrepot trade and re-exports especially in electronics and manufacturing. After the 2001-03 global recession, the slump in the technology sector, and outbreak of SARS, which cut down tourism and consumer spending - the government is attempting to make the economy less dependant on the external sector; though continuing efforts to establish Singapore as Southeast Asia's financial and high-tech hub. Fiscal stimulus, low interest rates, growth in exports and internal flexibility led to an 8 per cent growth in real GDP in 2004, the economy's best performance since 2000.
Singapore's economy grew 4.7 percent in the first nine months of 2005, with broad-based expansion across the services and manufacturing sectors. Singapore's economy is expected to grow close to 4.5 percent this year and up to 5 percent in 2006.
Pharmaceuticals output soared 200.4 percent as drug makers ramped up production to meet demand for active pharmaceutical ingredients from the United States and Europe. The increase in pharmaceuticals output -- after 52.3 percent growth in August -- was magnified because of a low base in September 2004. Excluding the contribution from the biomedical cluster, which covers pharmaceuticals and medical technology, manufacturing output rose 6.5 percent.
Singapore's offshore and marine segment also performed well, growing 24.8 percent with ship-repair and shipbuilding projects. The Aerospace sector climbed 9.6 percent as more repair work was carried out on commercial aircraft.
The electronics cluster rebounded to grow 6.9 percent in September after a dip of 0.5 percent in August due to higher demand for personal computer storage drives, consumer electronics and semiconductors.
Compiled from World Bank’s East Asia Update, November 2005
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