2. Topic 1: Introduction to Macroeconomics, GDP and Growth
3. Topic 2: Workers, Wages and Unemployment
4. Topic 3: Price Level and Inflation
5. Topic 5: Economic Fluctuations and Aggregate Expenditure
6. Topic 6: Spending Multiplier and Fiscal Policy
7. Topic 8: Central Bank and Monetary Policy
A comprehensive group of five people have selected Singapore of our choice to do a macroeconomics analysis. We have chosen Singapore as despite its small market, its economy is heavily engaged in the global market.It is also one of the most stable in macroeconomic terms with no foreign debt, high government revenue and a consistently positive surplus. Therefore, it could benefit us to have a better understanding in Singapore’s economy.
In this report, we will be covering various areas of Singapore’s economy which were:
• Introduction to Macroeconomics, GDP and Growth
• Workers, Wages and Unemployment
• Price Level and Inflation
• Economic Fluctuations and Aggregate Expenditure
• Spending Multiplier and Fiscal Policy
• Central Bank and Monetary Policy
Topic 1: Introduction to Macroeconomics, GDP and Economic Growth
Analysis on Topic 1 written by Puja Shah
Source: Singapore Economic Growth Expected to Slow Down: MAS Survey
This article basically talks about the expected overall downgrade of Singapore’s economic growth across all sectors except for the inflation for 2012, which is expected to have rose marginally. According to the economists and analysts, Singapore’s Gross Domestic Product would grow 1.0% lesser, in the third quarter this year than reported previously, the manufacturing sector, financial services, construction sector and the unemployment rate downgrades.
Gross Domestic Product refers to the period of time that the production of all final goods and labour value from the economy of a country or region. It is often known as the best index to measure national economic condition. GDP reflects a country’s economic performance, national strength and wealth.
There are several elements that affect GDP growth of Singapore. In my opinion, one of the reasons could be the global economy. Due to the global economic downturn, the economy of Singapore has been shrinking. One possible reason for this could be that Singapore’s economy is mainly dependent on exports and exports of non-oil products, accounting for more than half of its GDP, which then makes Singapore’s economy vulnerable to changes in global economic growth.
In a nut shell, the uncertainty of the U.S economic recovery and the recession in the global electronics market has caused the further downturn in Singapore’s export and thus affecting Singapore’s GDP growth.
2. Topic 2: Workers, Wages and Unemployment
Analysis on Topic 1 written by Huynh Thi Thao Anh
Cai Haoxiang, The Straits Times (1Nov 2011) Jobless rate for Singaporeans at 3% in Third Quarter 201
The Manpower Research, which is national statistical information on Singapore’s labour market, co-ordinate the Labour Force Survey to gather more accurate estimates of unemployment rate obtained from survey that also excludes workers from abroad and construction workers doing on site. Unemployment refers to the proportion of the people who are willing and able to...