Question

Why Singapore cannot afford a trade deficit or capital and financial account deficit?

Answer 1

Let me tell you the "Meaning of Trade Deficit". "If the Total value of "Imported Goods" are "Greater "then the total value of the "Exported Goods" are known as Trade Deficit " .

Also, the "Meaning of Capital Account Deficit" means "The Money is going out from the country which means that the country is increasing their Foreign Assets". And "Financial Account Deficit" means "The Funds kept for the investment is going out from the country."

Now, the Main Part of the answer are as follows:

Singapore is the 14th Largest Export Economy in the World. It "Exports Lots of self-manufactured goods such as Integrated Circuits, Computers, Gas Turbines, Devices, Crude Petroleum and Refined Petroleum to China, Hongkong, USA etc."

That's why Singapore cannot afford or cannot have "Trade Deficit or Capital and Financial Acoount Deficit"

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