Singapore’s economy was a stellar performer in 2010, growing 14.7%. Although this was an amazing turnaround from 2009′s negative growth, the city-state still faces economic challenges and would probably cool down somewhat in 2011.
Prime Minister Lee Hsieng Loong’s New Year message to Singapore echoed previous warnings that the rapid growth was due to ‘special circumstances’, and may not be repeated in coming years. Projections for 2011 have the economy growing at a more modest 4 to 6% as Singapore deals with a massive influx of foreign workers, a growing income gap among residents, and a rising cost of living.
PM Lee said the challenge was to make things better whilst ensuring Singapore remained open and welcoming, taking care of talented as well as low-skilled workers, and teaching Singaporeans to become more self-reliant.