Singapore Economy, 2004-2013

Topics: Inflation, Unemployment, Recession Pages: 12 (1672 words) Published: October 10, 2014
ECONOMICS ASSIGNMENT

Singapore
Economy
(2004 to 2013)

CONTENTS

1. Introduction……………………………………………………….2

2. Production Output Performance Analysis…………………..4

3. Labour Market Analysis………………..………………………..8

4. Price Level Analysis…………………………………………….10

5. Conclusion……………………………………………………….12

1. Introduction
Singapore has a highly developed and free-market economy that thrives on an open and corruption-free environment. It is touted as one of Southeast Asia’s successful financial and high-tech hub to date. Price stability and a per capita gross domestic product (“GDP”) higher than that of many developed countries maintain economic welfare and potential growth of the city-state. Singapore is heavily dependable on exports, particularly in sectors related to consumer electronics, information technology products, pharmaceutics, and financial services. While productivity has sunk to an average of approximately 10 percent in the last decade, the local government has initiated long-term growth plans focused on raising domestic productivity. In the last decade, the city-state has attracted major investments in pharmaceutical and medical technology production.

2. Production Output Performance Analysis
GDP

GDP is the monetary value of all final goods and services produced within a country in a specified period of time. It is commonly used as a measure of the health of a country based on its national income and private and public output. As demonstrated by the data sourced by the World Bank, Singapore has experienced a healthy growth in the last ten years. In 2004, its GDP was at $114.19 billion (USD), but by 2013, it had risen to $297.94 billion (USD). It is important to note that there was only slight increase between 2009 and 2010 when compared to other years. During this time, Singapore entered a period of recession, but rebounded quickly by its last quarter in 2009.

GDP Growth Rate
Graph 1

Graph 2

GDP growth rate is a measure of the expansion rate of a country’s economy. In the last decade, the growth rate in Singapore averaged 6.8 percent except in 2009 and 2010.As discussed above, Singapore experienced a period of recession in the first three quarters in 2009. By its last quarter in 2009, the economy picked up, which led to a sharp growth rate increase of 19.80 percent.

GDP Per Capita

GDP per capita measures the average standard living of a country’s population. The above data reveals that the GDP per capita in Singapore reached an all-time high of $36,110.13(USD) in 2013.It steadily increased from $26,297.10 (USD) in 2004, suffered a brief contraction in 2010 due to the recession, but recovered in 2011 to continue its steady increase to its figure today. By comparison, the GDP per capita in Singapore is 298 percent of the world’s average. Despite its limited resources, the city-state is in the top 20 most prosperous countries.

Performance Trend from 2004 to 2013
As discussed above, Singapore experienced a sharp decline in 2009. The decline stemmed from a decrease in non-oil exports in manufactured goods, which was caused by deteriorating economic conditions in the United States and Europe at that time. Furthermore, the collapse of the stock market resulted in huge losses, which led to a global economic crisis and further depressed domestic demand that reduced consumption and investment in assets. However, the economy picked up in 2010 and the GDP growth rate rose to 19.80 percent, in part because firms and domestic consumers were willing to spend during the recovery period.

Measurement taken by Government to achieve economic performance To achieve long-term economic performance and growth, Singapore focused its policy on labour supply and labour productivity: Labour supply measurement

i) Since 2001, the government encouraged Singaporeans to procreate in order to increase its falling birth rates...
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