The Economy of Singapore

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

ECONOMICS
The economy of Singapore
Introduction
Singapore is known to be a high income economy with a huge gross national income.
Singapore is also known to provide one of the world’s most business friendly regulatory
environment mostly for businessmen. It is also known to be ranked among the world`s most
competitive economies. This particular country is also known to develop from a low income
country to a high income country (Chiu, 2018). Singapore have also known to reach full
employment and the manufacturing and service sector of Singapore have been the two pillars
of the high value added economy of Singapore. It is also known as the world’s most
prosperous country where it has strong international links with the international countries.
The largest industry of Singapore is the manufacturing sector which is known to contribute
more than twenty percent of the gross domestic product of the country. The other key
industry clusters include transport engineering, logistics and electronics. The growth of the
Singaporean economy will be growing at a modest pace in the future years which is known to
be supported by more expansionary fiscal stance, stronger investment and sound labour
market which is know to underpin private consumption. Singaporean economy is known as
the highly developed free market economy and has been ranked as one of the most open in
the world. It is also the seventh least corrupted and also has the third highest per capita gross
domestic product. The trade to gross domestic product ratio of Singapore is also known as the
highest in the world.
Singapore in the most modern city of the Southeast Asia. The Singaporean economy
is a highly developed free market economy. The government linked companies in Singapore
known to play an important role in the economy. With the help of monetary policy, the
government is known to maintain the price stability with the help of monetary policy. The

ECONOMICS
government is then known to increase the interest rate and control the price which will
therefore control inflation. policy, the government is known to maintain the price stability
with the help of monetary policy (Wurfel & Burton, 2016). The government is then known to
increase the interest rate and control the price which will therefore control inflation. The
government will also create adverse situation in the business which will be increasing the
propensity to save, help in performing open market operations.
Production output performance analysis
Year Real GDP
Real
GDP
growth
rate ( %
)
Real
GDP per
capita
2005
170716905023.
84
7.48915
7
61973.6
9
2006
185842757609.
09
8.86019
6
65386.1
4
2007
202775870920.
43
9.11152
7
68432.6
9
2008
206400733406.
67 1.78762
66046.1
5
2009
205155335533.
55
-
0.60339
63697.2
9
2010
236421782178.
22
15.2403
8
72115.8
4
2011
251436156949.
03
6.35067
3 75113.2
2012
261703043637.
70
4.08329
8
76285.5
7
2013
275078914558.
12
5.11108
7
78896.6
1
2014
285762669600.
29
3.88388
7
80903.5
3

ECONOMICS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0.00
50000000000.00
100000000000.00
150000000000.00
200000000000.00
250000000000.00
300000000000.00
350000000000.00
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Real GDP Real GDP per capita
Year
Figure 1Graph of GDP growth
Analysis of the table
The table above shows that values of real GDP, real GDP growth rate and real GDP
per capita. The real gross domestic product in case of Singapore known to have increased at
an increasing rate from 2005 to 2014. The highest rate of the gross domestic product had
been in the year 2014 while the leas was in 2005. The gross domestic product kept on
increasing from 2005. The rate of gross domestic product have only decreased in the year
2009 where the growth rate declined by 0.6 percent. For this reason, the real GDP per capita
in the year have decreased in 2009 from 66046 to 63697. The manufacturing sector of
Singapore is known to contribute a huge rate of the gross domestic product of the country.
The steady growth rate also states that it will be continuing to expand in the recent years.
The huge growth of the gross domestic product of Singapore is known to flourish as a result
of huge amount of foreign labour.
GDP measuring the performance of the economy
The real gross domestic product is known to be the macroeconomic measure of the
economic output which is known to be adjusted for the price change. Therefore, the real