money & economicsanalysisOur World in Data1960–present · Singapore

Singapore went from a third of Western Europe's income in 1960 to twice as much today

the gist

In 1960 Singapore's income per person was about a third of the average in Western Europe, and lower than Western Europe's average had been around 1900. Since then the city-state has grown among the fastest of any economy, and by recent measures its GDP per person is about twice the Western European average. The rise came from deliberate policy: export-oriented manufacturing, heavy investment in education, a strong port and a banking hub, and a state that planned industrial growth. Singapore had few natural resources, so its growth rests almost entirely on people and trade.

how it works

Singapore attracted foreign manufacturers with stable government, low barriers to trade and skilled workers, then moved into finance and trade services. Productivity rose as workers gained skills and capital flowed in, so each worker produced far more over time.

so what

Singapore is one of the clearest modern examples of a country escaping poverty through policy, education and trade rather than natural wealth, so it features often in debates about development strategy.

fun fact

Singapore imports much of its water from neighbouring Malaysia under long-standing agreements.

more on this

background

The economy of Singapore is a highly developed mixed market economy with dirigiste characteristics. Singapore's economy has been consistently ranked as the most open, competitive and pro-business in the world. It is also perceived as the 3rd least corrupt in the world. Singapore has low tax-rates and the highest per-capita GDP in the world in terms of purchasing power parity (PPP). The Asia-Pacific Economic Cooperation (APEC) is headquartered in Singapore.

From Wikipedia: Economy of Singapore (CC BY-SA 4.0) ↗

Our World in Data · CC BY 4.0

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