by Romesh NavaratnarajahSingapore showed a high level of resilience to global financial shocks, despite its dependence on global trade and finance as well as the openness of its economy.
According to Moody's Investors Service, Singapore's stable outlook and Aaa sovereign rating are an indication of 'very high' economic, government financial and institutional strengths. These also reflect a 'low' susceptibility to risks caused by economic, political and financial events.
The city-state's 'very high' economic strength largely mirrors the trend of a high per-capita income and high growth rate for an advanced economy.
Singapore's scores on these metrics have surpassed the Aaa medians for both real GDP growth and per-capita income in terms of purchasing power parity in the last decade.
Moody's added that sound regulatory and supervisory frameworks helped promote a strong, well-managed financial system.
On top of a healthy economy and investment regime, these factors helped the country achieve a strong external position. Moody's also noted that Singapore has one of the largest net-asset international investment positions in the world.
The strong rating is also attributed to the country's track record of social cohesion and political stability since its independence in 1965.
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