Analysis of Output Performance of Singapore

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

1ECONOMICS
Table of Contents
Introduction........................................................................................................................2
Analysis of output performance of Singapore...................................................................2
Real GDP.......................................................................................................................2
Growth in Real GDP.......................................................................................................3
Per capita Real GDP......................................................................................................4
Different government measure to enhance output performance...................................5
Analysis of labor market performance of Singapore.........................................................6
Unemployment rate........................................................................................................6
Types of unemployment in Singapore...........................................................................6
Unemployment trend in Singapore................................................................................7
Government measures to attain full employment in Singapore.....................................7
Price level analysis in Singapore.......................................................................................8
Inflation rate...................................................................................................................8
Cause of inflation...........................................................................................................8
Causes of inflation in Singapore....................................................................................8
Government measure of achieve price stability...........................................................10
Conclusion.......................................................................................................................10
References.......................................................................................................................11

2ECONOMICS
Introduction
Impressive economic performance commenced by Singapore in a relatively short
period has given the nation status of a developed country. The economy has constituted
a stable economic performance by utilizing its economic resources efficiently. This is an
economically open nation achieving a higher average income and stable price level
compared to most of the developed nations in the world. Despite having a relatively
small size of domestic market and insufficient stock of natural resources, the nation
successfully combats the impact of two of the world’s largest financial crisis – Asian
financial crisis in 1997 and global financial crisis in 2008. Manufacturing is considered
as the largest industry of Singapore which the sector contributing nearly 20 – 25 percent
of nation’s GDP. Major industries of manufacturing sector of Singapore include and
chemicals, electronics, biomedical sciences, transport engineering and logistics
(Chiu,2018). The next import sector of the economy is the financial service industry that
has accounted a stable growth taking advantage from political stability and business-
friendly environment of the nation. The nation mainly exports electronic goods, IT
related products, optical devices, pharmaceutical products and others. The paper
attempts to evaluate economic performance of Singapore by observing its performance
trade major economic areas such as output, labor market and price level.
Analysis of output performance of Singapore
Real GDP
The simplest measure of estimating output performance of a nation is Gross
Domestic Product of the nation. This an aggregate measure assessing values of all the
produce and services that an economy produces in the accounting year. In order to
estimate monetary values of goods or services, the products or services need to be
valued in terms of their respective market price. The computation of GDP involved
recorded market price of the current year or market price accounted in the pre-
determined base year (Heijdra, 2017). GDP estimated using market price of the base
year is known as real GDP. This is an inflation-adjusted measure for estimating values
of all the finished goods and services of the economy.

3ECONOMICS
Figure 1: Real GDP of Singapore from 2005 to 2014
(Source: tradingeconomics.com, 2019)
The figure shows trend in Real GDP of Singapore for the period. As obtained
from the above figure real GDP constitutes an upward rising trend from 2005 to
2008.The increasing trend in real GDP supports steady economic performance during
this time. Real GDP declined suddenly since 2008. The economic downturn of
Singapore during this time was explained by global financial crisis occurred in United
State during this time. Singapore was the first nation in the East Asian economy that
suffers due to financial crisis in US after July 2008. As Singapore heavily relies on
export, economic downturn of its trading partners during the recession caused a decline
in GDP of Singapore as well. There was a considerable decline in export of non-oil
manufacturing product due to deterioration of economic state in US and Europe.
Economic recovery began since 2010. Economic performance gradually improved with
real GDP stated to increase again.
Growth in Real GDP
Growth in real GDP shows the overtime trend of real GDP of a nation. It is
estimated by computing percentage change in real GDP from one year to the next. As
real GDP gives an inflation-adjusted measure of aggregate output, percentage change
in real GDP is considered as a proxy measure of economic growth of the nation.