Due to its high dependency on international trade, Singapore is highly susceptible to global protectionism and a hard landing of the Chinese economy, according to insurance firm Atradius’ 2019 Singapore country report. The report’s authors noted that Singapore can expect lower growth in 2019 and 2020, but strong fundamentals will remain.
In 2018, Singapore’s economy benefited from robust growth in global trade. Exports and industrial production recorded increased more than four and seven per cent respectively, whilst private consumption remained strong. However, economic expansion is likely to moderate in 2019 and 2020, as both global trade growth and Chinese import demand have cooled down.
Nevertheless, for a small state, the economy is relatively well diversified. Singapore’s banking sector is also healthy and adequately supervised. Atradius also noted how the city state’s long-term growth strategy to move away from being just a trade, transport and financial hub and become a centre of high-tech industry has started to bear fruit in the bio-medical sector, and the government has begun to extensively promote business digitalisation.