Economic Performance of Singapore

Added on -2020-02-24

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ECONOMICSEconomicsName of the StudentName of the UniversityAuthor note
1ECONOMICSA commendable economic performance of Singapore has turned it a developed nation injust few years. In many of the economic aspects, Singapore is even better than other developednations in the world. Allowing openness is a major feature of this country. The economy ishighly dependent on its external sector. Electronic goods, medical and pharmaceuticals product,Information Technology related goods are examples of goods exported from Singapore. Thecountry often imports industrial input to a large scale. Despite that, the country manages tomaintain a positive balance in its net export account. For the domestic economy as well, a freemarket environment characterizes the economic nature. Objective of the present paper is to make an analysis of overall economic performance ofthe economy. The economic performances are evaluated for last ten years in terms of three majorindicators- Output or GDP, price level that is inflation trend and unemployment trend forviewing labor market performance. Output Performance Analysis Real GDPGross domestic product is sum of the monetary values of recorded goods and services ina nation in a particular year. For computation of GDP, all the goods and services are evaluatedwith their market price. There are two choices of market price used for GDP computation. One isusing the current market price. If there are high level of inflation in current year then goods andservices are overvalued. Similarly, in times of deflation goods and services are undervalued.GDP with current year price is called nominal GDP. To avoid the over or under estimation ofGDP it is better to use market price of a stable fixed year. GDP computed with a fixed base yearis known as Real GDP. Real GDP is closer to the actual valuation of goods and services of the
2ECONOMICScountry as the selection of base year is made with great care and be the one when the economy isfree from any abnormal shocks. Real GDP growthAbsolute value of GDP gives the value of output in absolute terms. However, economicgrowth depends on the rate of change in GDP. The change in GDP from one year o itssubsequent year is expressed as a percentage of previous year GDP. This is termed as growth inGDP or economic growth rate (Smith et al., 2015). Similarly, real GDP growth rate is thepercentage change in Real GDP. Growth in real GDP is most often used as a measure foreconomic growth rate.Per capita real GDPPer capita real GDP is a measure of average income of the nation. As it is obtained bydividing total GDP by population it gives average productivity of a nation.Performance in SingaporeThe indicators used for output analysis are related to each other. Performance trend inoutput is evaluated using information presented in the tables and graphs given below
3ECONOMICSYearReal GDP Growth RateReal GDP Per Capita (US dollar)20057.540020.2620068.942223.8920079.144191.2420081.842650.102009-0.641133.30201015.246569.6820116.248439.9420123.949000.712013550467.8420143.651440.82Table 1: Real GDP growth rate and per capita real GDP in Singapore(Source: worldbank.org, 2017)Figure 1: Real GDP in Singapore (Source: tradingeconomic.com, 2017)

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