Economic Performance of Singapore: Analysis of GDP, Unemployment, and Inflation

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

2ECONOMICS
Table of Contents
Introduction................................................................................................................................3
Production output performance analysis....................................................................................3
Analysis of the table...............................................................................................................4
Description of real GDP, GDP growth rate and per capita GDP...........................................4
Measures taken by the government........................................................................................5
Labor market analysis................................................................................................................5
Analysis of the table...............................................................................................................6
Unemployment and its types..................................................................................................6
Types of unemployment in Singapore...................................................................................7
Measures taken by government..............................................................................................7
Price level analysis.....................................................................................................................7
Analysis of the table...............................................................................................................8
Inflation: Definition...............................................................................................................8
Main causes of inflation.........................................................................................................8
Measures taken by government..............................................................................................9
General Conclusion....................................................................................................................9
Reference list and bibliography...............................................................................................11

3ECONOMICS
Economic performance of Singapore
Introduction
Singapore is the island city state of Southeast Asia. It is one of the highly developed
market economies and is also stated as one of the original Four Asian Tigers along with Hong
Kong, South Korea and Taiwan. The economy of Singapore is also known to be one of the
innovative, dynamic and business friendly country. According to the index of economic
freedom, it is also known as one of the freest economies in the world. Singapore traditionally
has one of the lowest unemployment rates among developed countries. The growth rates of
Singapore had been so has transformed the living standards of the population. Singapore also
have the world’s highest percentage of millionaires (Tan & Tang, 2016). The Singaporean
economy is also known as the developed free market economy which is known to be one of
the most open economy in the world. It is also the seventh least corrupted nation and have the
third highest per capita GDP in the world which is in terms of purchasing power parity. The
government also plays a major role in the Singaporean economy The Singaporean economy
is one of the major outflow financier of FDI in the world (Rodan, 2016). . This country has
also benefitted from the inward flow of the foreign direct investment which comes from the
global investors as a result of high attractive investment climate along with stable political
environment.
Production output performance analysis
Table 1: Growth of Gross domestic product
YEAR
REAL GDP (Constant 2010
US$)
GDP Growth (annual
%)
GDP Per Capita (Current
US$)
2004 158822442244.22 9.549175476 27405.27136
2005 170716905023.84 7.489157459 29869.85398
2006 185842757609.09 8.860196114 33579.85948
2007 202775870920.43 9.111527148 39223.58187
2008 206400733406.67 1.787620228 39721.04818
2009 205155335533.55 -0.603388298 38577.55822

4ECONOMICS
2010 236421782178.22 15.24037704 46569.67951
2011 251436156949.03 6.350673205 53237.56491
2012 261703043637.70 4.08329765 54715.69483
2013 275078914558.12 5.111087259 56389.18178
2014 285762669600.29 3.883887305 56957.07857
2015 292166776677.67 2.241057968 54940.85814
(Source: World Bank Open Data | Data. 2019).
Analysis of the table
The gross domestic product has been the highest in 2015 and it can be said from the
above table that the gross domestic product kept on increasing from 2004 to 2015. The gross
domestic product however has decreased a little in the 2009. For this reason, the GDP growth
is negative in 2009. The table of GDP growth shows that the growth of the gross domestic
product had been negative in the year 2009. The gross domestic product growth although had
been highest in 2004. The GDP growth have been decreasing since 2013. The high rate of
growth of gross domestic product have been growing and had been highest in the year 2010.
Per capita growth of gross domestic product also kept on rising from 2004 to 2015.
The manufacturing sector of Singapore known to contribute a high rate of country’s
GDP. The steady growth suggests that it will continue to expand in recent years. The huge
amount of foreign labour allowed the economy of Singapore to flourish leading to growth of
Gross domestic product of the country.
Description of real GDP, GDP growth rate and per capita GDP
The real gross domestic product is known as the macroeconomic measure of the value
of economic output which is adjusted for the change in price. for this reason, it can be said
that the real gross domestic product is a much better index in order to express the output of an
economy. It also takes into account the value of gods and services which fluctuates in
monetary terms (Comunian & Ooi, 2016). For this reason, it also provides a better view of