Chart of the Day: Singapore's current account to GDP ratio crashed for the last 3 years

It's the longest stretch of decline.

According to DBS, the current account surplus to GDP ratio has been falling. Latest current account surplus as of 4Q13 stands at SGD 17.4bn.

While this is still exceptionally high at 20.9% of the GDP, it has been falling for the last 3 years.

Here's more from DBS:

This is about 24% lower than the recent peak of SGD 22.8bn or 30.9% of GDP in Dec10. This is also the longest stretch of decline in the current account to GDP ratio since the Asian financial crisis.

The Eurozone debt crisis, a slow recovery in the US and comparatively slower growth in China all play a part in this decline.

But weak external demand alone is not all there is to it. Usually weak external demand will be accompanied by weak import demand. This is especially true for trade dependent economies like Singapore.

The reason is weaker export sales bring slower growth and fewer demand for imports – the net impact on the current account balance tends to be minor.

More From Singapore Business Review

• Singapore’s top 5 hotel Sunday champagne brunches
  

• Check how this dull space was turned into a bewitching café in a garden
  

• What 10 leaders can tell you about starting up in Singapore