In the table given , Singapore’s balance of payments (BoP) comprises:

(a) Current account of goods, services & factor income (primary & secondary income balance)

(b) Capital & Financial account as DFI & Portfolio Investment

(c) Errors & Omissions

(d) A+B+C = BoP reflected in E

(e) Reserve Assets

(f) Official reserves (stock as accumulated over the years)

Explain the balance of payments position of Singapore and why traditionally, its trade in services rather than trade in goods dominated its Current Account. Why is this not a problem in policy?

Items		Latest Period	Latest Data	% Change (Y-o-Y)	Previous Period Data
Balance of Payments	S$M	Q2/17	4,443.2	-6.6	16,613.8
Current Account Balance	S$M	Q2/17	21,049.5	-1.0	20,092.9
Exports of Good and Services	S$M	Q2/17	188,908.4	6.8	184,785.5
Imports of Good and Services	S$M	Q2/17	161,953.1	8.7	159,598.4
Primary Income Balance	S$M	Q2/17	-2,058.1	na	-1,496.9
Secondary Income Balance	S$M	Q2/17	-3,847.7	na	-3,597.3
Capital and Financial Account Balance (decrease in assets and liabilities, and net inflows in net balance, are indicated by a minus(-) sign	S$M	Q2/17	16,744.3	na	3,096.3
Reserve Assets	S$M	Q2/17	4,443.2	na	16,613.8
Official Foreign Reserves	US$M	Aug-17	273,114.8	8.3	269,724.1

Answer rating: 100% (QA)

the balance of payments position of Singapore and why its trade in services rather than trade in goods dominates its Current Account Singapores balance of payments BoP is comprised of several componen... View the full answer