Singapore’s working population to shrink 2% yearly after 2020

It will nosedive right after its peak 4 years from now.

Singapore's competitiveness and economic growth is up for a major challenge as it endures pressures from the waning working population.

According to the latest report by Natixis, gross domestic product growth is not expected to rebound, with economy bounding to decelerate full year to 1.9%.

"Singapore faces labor shortages, exacerbated by low fertility rates and an aging population. The share of working age population to total is declining," the report noted.

Quoting United Nations' estimates, the report claimed that the number of working population is set to decline rapidly by 2% per year after peaking at 2020.

"This is one of the reasons for wage growth, although slowing, to exceed overall inflation in the economy, which has been negative this year," the report explained.

With the erosion of wage competitiveness, Natixis stressed the need for the city-state to raise productivity of loosen immigration policy.