Using formal econometric analysis and novel modelling approaches, this innovative book has important implications for econometric research in general and, in particular, on how to model and how to perform in-the-sample simulation and out-of-sample forecasts of the Singapore economy. Focusing on econometric modelling and econometric forecasting of macroeconomic variables, which are two of the main tasks undertaken by theoretical and applied econometricians, it presents the Singapore economy through a macroeconometric model and lays foundations for further research. Abeysinghe and Choy offer rare insights into how the Singapore economy works. Each of the major chapters discusses the implications of the empirical findings for current policy and an entire chapter has been devoted to macroeconomic policy simulations. This book is a unique introduction to the Singapore economy and is an essential read for econometric modellers and policy makers in Singapore as well as being of interest to advanced undergraduates and graduate researchers interested in modelling small open economies.