Economics Assignment 2022

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
Student ID

ECONOMICS1
Table of Contents
1.0Introduction...........................................................................................................................2
2.0 Production Output Performance Analysis............................................................................2
2.1 GDP..................................................................................................................................2
2.2 GDP growth rate..............................................................................................................3
2.3 GDP per capita analysis...................................................................................................4
2.4 Government measure to achieve the output performance................................................5
3.0 Labor Market Analysis.........................................................................................................5
3.1 Types of unemployment...................................................................................................6
3.2 Unemployment trend in Singapore..................................................................................7
3.3 Government measure to achieve full employment...........................................................8
4.0 Price Level Analysis............................................................................................................8
4.1 Inflation trend in Singapore.............................................................................................8
4.2 Causes of Inflation...........................................................................................................9
4.3 Government measure to achieve stable price.................................................................10
5.0 Conclusion..........................................................................................................................11
6.0 References..........................................................................................................................12

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1.0Introduction
The Singapore’s economy is one of the most highly developed mixed market
economy. The economy of Singapore is ranked as one most open nation in world. Singapore
holds the third position in terms Purchasing Power Parity. In the nation, state owned
enterprise plays an important role. The country is one major financer of Foreign Direct
Investment in the world. Inward foreign direct investment also plays an important role in the
country. Stable economic and political environment help to attract foreign funds in the
country. Earnings from export such as chemicals, electronics and service is the economy’s
main source of revenue. The revenue earned from export helps to purchase raw materials and
natural resources. In order to maintain the competitive position despite increasing wage,
Singapore’s government aims to promote high value added service. Government has opened
to telecommunication, financial service, retailing and power generation sector to foreign
service providers (Chiu, 2018). The report conducts a research report on economic
performance of Singapore from the year 2005 to 2018. The economic performances of
Singapore are analyzed applying macroeconomic indicators real GDP, growth rate of real
GDP, real GDP per capita, unemployment and inflation. In addition to discussing economic
performance the paper also discusses policies of government to achieve stable growth,
employment and stable price.
2.0 Production Output Performance Analysis
2.1 GDP
Gross Domestic Product refers to a monetary measure of market value of all final
goods and services produced within the nation. Values of goods and services are measured
using the market price of produced goods and services. In estimating GDP, either market
price of current price or market price of a fixed base year is used. Computed GDP using

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market price of current year is termed as nominal GDP while estimated GDP using base year
price is called real GDP.
2.2 GDP growth rate
Growth rate of GDP measures how fast a nation is growing. It estimates rate of
change in measured GDP from one year to the next. Growth rate of GDP is the most
important indicator of assessing health of the economy (Mankiw, 2014). The figure below
shows the trend growth rate in Singapore from 2005 to 2018.
Figure 1: GDP growth rate in Singapore (2005 to 2018)
(Source: Tradingeconomics.com, 2019)
The figure above explains trend growth rate in Singapore from 2005 to 2018. As
shown from the figure, from 2005 to 2008 Singapore economy grew at a faster rate. The
economy recorded a decline in the growth rate after 2008. The economic downfall in
Singapore after 2008 was due to the Global Financial Crisis that is originated in United State.
Among the East Asian countries, Singapore was the first country that highly suffered due to
the financial crisis in Singapore. Singapore is a highly open economy relying heavily on
export. Decline in economic activity in its trading partner caused a sharp decline in export