Singapore was one of the top two countries in the political stability indicator (1.59), trailing only Monaco and New Zealand. In general, political stability is considered a necessary condition for trade, investment, and economic growth.
It was also one of the top two countries in educational attainment (99), directly behind South Korea. “Educational attainment and skill acquisition are key indicators for trade and economic competitiveness,” the report said.
High levels of inequality, as measured by the Gini coefficient (34 points), continue to be an issue in Singapore. “Since 2007, the Gini coefficient has declined and Singapore has taken measures to increase upward mobility,” the report said. “However, income inequalities remain high. Countries should be wary that trade can impact inequality, and similarly, high levels of inequality can result in societal tensions that can become an obstacle to further trade growth.”