Singapore is a small Asian country with a population of more than 5 million people. The country has become a major force in the region, because of how it has transformed itself. Even with low mineral resources, the country has grown its GDP to more than $320 billion. This trade has enabled the country to have a surplus in trade. In 2014, the country exported goods worth more than $519 billion and imported goods worth more than $400 billion. The key sectors in the economy are banking, biotechnology, energy, and real estate.
There are a number of reasons why Singapore has had a great economy. First, the country has low corruption rates. In fact, statistics place it as one of the least corrupt companies in the world. Second, the country has taken a neutral stand on many global issues. This makes it more stable. In fact, because of this neutrality, the country hosted Trump and North Korea’s Kim Jong Un last year. This has made many people to call it the Switzerland of Asia. Third, its democratic governance, coupled with its stability have made it an ideal destination for investors interested in Asia and China.
Today, the country reported that its economy expanded by 1.9% in the fourth quarter. This was a lower growth than the 2.1% the investors were expecting. On a MoM basis, the economy expanded by 1.4%, which was lower than the expected 1.5%. On a positive side, the country’s trade increases by 9.2% in 2018.
As a result of this news, the Singapore dollar declined against the USD. The pair reached a high of 1.3612. This halted a decline that started a while back when the pair reached a high of 1.3272. On the chart below, the price is above the short and medium-term moving averages. At the same time, the signal line of the pair is above the neutral line. There is a likelihood that the pair will resume the upward trend.