Economics Assignment: Analysis of Singapore's Output, Labor Market and Price Level Performance

Running Head: ECONOMICS ASSIGNMENT
Economics Assignment
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1ECONOMICS ASSIGNMENT
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Production output performance analysis...................................................................................2
2.1 Gross Domestic Product........................................................................................................2
2.2 GDP growth rate....................................................................................................................3
2.3 GDP per capita.......................................................................................................................4
2.4 Government measures for GDP.................................................................................................5
3.0 Labor market analysis............................................................................................................6
3.1 Types of unemployment........................................................................................................6
3.2 Unemployment trend.............................................................................................................6
3.3 Government measures for employment.................................................................................7
4.0 Price level analysis....................................................................................................................8
4.1 Inflation trend........................................................................................................................8
4.2 Causes of inflation.................................................................................................................9
4.3 Government measures of price stability..............................................................................10
5.0 Conclusion...............................................................................................................................10
6.0 References................................................................................................................................12

2ECONOMICS ASSIGNMENT
1.0 Introduction
Singapore is an open free market economy bounded by its geographic size. Small size or
limited resources however cannot restrict economic prosperity of Singapore. This is one of the
fastest growing Asian economies across the globe. Economic resilience and strength of the
economy has been reflected from a quick economic recovery after crisis hit in 2008
(worldbank.org, 2018). Access to limited resources makes the economy extremely dependent on
its external sector. One key source of economic revenue is earnings from export. The economic
openness helps foreign investors to invest in the nation. Favorable structure of tax helps further
attracts business investment. The economy involves in value added activities in the industrial and
service sector (Benigno, Converse & Fornaro, 2015). Banking, energy, real estate, infrastructure
and biotechnology are some of the major economic sectors.
The key drivers of economic growth are engineering and electronics. In the service
industry, the fastest growing subsectors include finance, insurance, transport and storage. Tea per
presents a brief summary of economic performance of Singapore for the period extending from
2008 to 2017. Economic performances are measured in three major aspects of output, labor
market and price level trend.
2.0 Production output performance analysis
2.1 Gross Domestic Product
Gross Domestic Product is primary indicator used to gauge performance of an economy
in terms of aggregate output. It presents total monetary values of all goods and services that a
nation produces in a given period of time. GDP is represented either in current year market price

3ECONOMICS ASSIGNMENT
or constant year price. The former is termed as nominal GDP while the other is termed real GDP
(Goodwin et al., 2015).
Figure 1: Trend in Singapore GDP (2008-2017)
(Source: tradingeconomics.com, 2018)
GDP of Singapore in the last ten year changes in an increasing manner. GDP was at a
significantly lower level during 2008. This is because of recessionary shock that arose due to
outbreak of global financial crisis. However, because of internal economic resilience and support
received from the government, the economy recovered as reflected from the continuously
increasing GDP (Chang, 2016). Significant expansion of manufacturing sector led to an overall
expansion of the economy.
2.2 GDP growth rate
GDP growth rate is a representative measure of economic growth. It capture change in
GDP in one year relative to the previous year and computed as a percentage change of GDP.