Economic Performance of Singapore: GDP, Unemployment and Inflation Analysis

Running head: ECONOMICS
Economics
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ECONOMICS
ECONOMIC PERFORMANCE OF SINGAPORE
Introduction
Singapore is a sovereign state city of Southeast Asia. It is also known as the island
country in the world. The country is known for the transition from a developing to the
developed country. This place is also known to be a global hub for entertainment, education,
innovation, logistics, technology, trade and transport. The city had been recognized as one of
the most technology ready nation and also had been ranked as the smartest city in the world,
best investment potential, world’s safest nation and second most competitive nation. The
Singaporean economy is a highly developed as well as a free market economy. The
government linked companies are known to have an essential role in the economy of
Singapore. The economy is also known to be the investment financier in the world. This
place has also benefitted from the inward flow of the foreign direct investment from the
global investors. The robust economy of the Singapore known to drive thousands of global
experts to the shores every year, this particular country is also known to have a financial hub
in the Asia Pacific Region. It has also known to have earned the reputation of the advanced
economies in the world. In the year 2017, Singapore had been ranked as the world’s second
most open economy as stated by Heritage Foundation. The largest industry in Singapore is
the manufacturing sector which is known to contribute more than twenty to twenty five
percent of the annual gross domestic product of the country. The main industry clusters in
Singapore manufacturing sectors comprises of the engineering, logistics, chemicals and
electronics engineering. Aerospace engineering, medical technology and health are the other
flourishing sectors of economy. The performance of the economy of Singapore is shown in
the success of the outward strategy and open strategy of enhancement. The composition of
the exports of Singapore has improved from the labour intensive to products that have high
value. Between the year 2000 to 2010, the gross domestic product of Singapore and has

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ECONOMICS
known to almost doubled which rose from S$163 billion to S$304 Billion. The economic
achievement of Singapore comprises of various sets of policies that are aimed at maintaining
a conducive environment in term of investment in the economy.
Production output performance analysis
Table 1 REAL GDP OF SINGAPORE
Year
Real
GDP per
capita Real GDP
Real
GDP
growth
2005 40020.26 170716905023.84 0.088602
2006 42223.89 185842757609.09 0.091115
2007 44191.24 202775870920.43 0.017876
2008 42650.1 206400733406.67 -0.00603
2009 41133.3 205155335533.55 0.152404
2010 46569.68 236421782178.22 0.063507
2011 48505.26 251436156949.03 0.040833
2012 49262.33 261703043637.70 0.051111
2013 50948.45 275078914558.12 0.038839
2014 52244.44 285762669600.29 0.022411
2015 52785.31 292166776677.67
(Source: World Bank Open Data | Data. 2019).
The gross domestic product is an extension of assessing the growth of the economy in
terms of the monetary expenditures. When the rate of the gross domestic product is
increasing, it means that the economy is growing. Therefore, it can be said that the gross
domestic product is known as those indicators which is used for gauging the health of the
economy of the country. The gross domestic product reveals the overall dollar value of all
the goods. There are basically two types of GDP, one is the nominal GDP and the other is
Rea GDP. The nominal GDP is the economic outcome of the nation without any kind of
adjustment of inflation while the actual GDP is equal to the economic output which is
adjusted for the effects of the inflation. When the growth of gross domestic product will be
negative in nature, it suggests that the economy is in recession. Therefore, it can be said that
real gross domestic product is comparatively a enhanced index for expressing the result of an