Economic Performance of Singapore from 2008-18: Analysis of Real GDP, Unemployment and Inflation

Running head: ECONOMICS
Economics
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1ECONOMICS
Introduction:
Singapore is actually built on its prosperity as the entre-pot and also the importer of
neighbouring nation’s raw materials for processing. Singapore has greater degree of
government intervention, with strong currency and comparatively lower inflation (Lim,
2016). Singapore economy has a good record of prudent macro-economic administration and
excellent growth. The Singapore economy is ranked as world’s most open economy. With
low tax rate of 14.2% of the gross domestic product, the economy of Singapore has the third
highest GDP per capita in the world in respect of the purchase power parity.
The economy has benefitted from the foreign direct investment across the global
investors and institutes because of the highly attractive climate for investment with stable
political environment (Goh, 2017). Singapore exports especially in the electronics, chemicals
and services. To preserve Singapore’s global standing and advance its economy wealth the
government has undertaken numerous measures to encourage investment, entrepreneurship
and re-train its workforce.
The essay is based on understanding the economic performance of Singapore from
2008-18. To assess the performance trend tools such as Real GDP, GDP Per Capita,
Unemployment and Inflation would be studied.
Analysis of Production Output Performance:
Real GDP:
Real GDP is better recognised as the inflation-adjusted GDP that measures the value
of the finished goods and service in an economy based on the constant base-year prices. The
Real GDP is adjusted for inflation or deflation by using the nominal GDP and GDP deflator.

2ECONOMICS
Figure 1: Figure showing Real GDP of Singapore
(Source: ceicdata, 2018)
The real GDP of Singapore increased by 3.8% during 2018 June after the growth of
4.3% in the earlier quarter (ceicdata, 2018). Until June 2018, the Singapore’s Real GDP
averaged around 7.3%. The trend reflects that it went the highest during June 2010 and also
recorded the lowest of -8.8% during 2009 March, primarily because of international financial
crisis.
Real GDP grate rate:
The real GDP growth rate is referred as the rate based on which a nations GDP
changes or increases year after year. GDP is referred as the market value of goods and
services manufactured in a nation for a particular time period.

3ECONOMICS
Figure 2: Figure showing Real GDP of Singapore
(Source: tradingeconomics, 2018)
The above stated graphical representation provides that the economy of Singapore has
increased by 3.8%. Evidences gained from graphical trend explains that Singapore has
reported a reduced growth in GDP from the downwardly revised trend of 4.3% which was
achieved in first quarter and less than the consensus expiation of 4% rise (tradingeconomics,
2018). The yearly quarterly growth of Singapore rose by 1% after the downward trend in
growth rate of 1.5%. The yearly GDP growth rate of Singapore averaged approximately
6.65% in 2018. The GDP growth rate increased by 19% in the second quarter 2010 but also
recorded a negative growth of -8.80 in 2009 first quarter.
Real GDP Per Capita:
The real GDP Per Capita is viewed as the value of overall economic productivity for a
country which is separated by the total number of person after adjusting with inflation. The
main purpose of real GDP per capita is to understand the standard living for a country over
the period of time.