Economy of Singapore: Causes and Solutions for Economic Slowdown

Running head: ECONOMY OF SINGAPORE
ECONOMY OF SINGAPORE
Name of the student
Name of the university
Author’s note

ECONOMY OF SINGAPORE1
Table of Contents
Introduction................................................................................................................................2
Theory........................................................................................................................................3
Conclusion................................................................................................................................12
Reference..................................................................................................................................13

ECONOMY OF SINGAPORE2
Introduction
The economy market of Singapore is flaming high with developed free market. It is
forecasted that Singapore may face an economic slowdown in the current year. The GDP of
Singapore is facing a low graph of 2.4 percent. The reason behind the slowdown of the
economic growth is due to the declining of performance of the organisation’s operations such
as export sector and manufacture of products. The Institute of Chartered Accountants
forecasts the GDP growth of England and Wales (ICAEW). There is a declination in the
import demand of china which have a great impact on United States and China (Anderson,
2018). This problem of disruption in United States and Chinese trade market have raged other
countries which have contribution in the trade market. It is observed that consistently there is
a declination of economic growth of the Singapore leads to dampen in investment, income is
reduced and this results in reduction in the consumption expenditure. The demand and supply
of the product is lowered and there is an economic fall and lowers the economic equilibrium
which also lowers the output. In this financial year Singapore Budget have some possibility
to rise in the economic growth of the country. This essay focuses on the problem of
Singapore facing loss in the economic growth and factors that have huge impact on economy
of Singapore. It discusses about overall issues that affects the economy of a country and the
issues which are aroused in Singapore for the economic slowdown. It is mainly focusing on
the demand and supply aspects of the policies that impact the market world (Baldwin, and
Scott, 2013). The policies of the country which can help the country to raise its growth from
an economic slowdown to be stable and promotes sustainable economic growth rate.

ECONOMY OF SINGAPORE3
Theory
The theory of the economic growth of Singapore can be explained with a graph which shows
the aggregate demand and supply model. This model elaborates the change in price level of
demand and supply of products and output. It reflects the changes caused by other factors
such as employment, income rate, and productivity.
Figure 1: Fall in
economic growth
Source: (Created by the Author)
In the above figure, AD curve is the aggregate demand and AS curve is the aggregate
supply curve. It is observed that with the declination in the export sector in Singapore has
resulted in lowering the demand rate for all the commodities which are manufactured in the
country. Thus, the aggregate demand of commodity falls and AD curve is shifted to left that
is AD1 is shifted to AD2. This also results in fall in price that is change of P1 to P2. The Q2
is the amount of demanded quantity. It is shown that there is an excess supply in the economy
which is reflected by the difference between Q1 and Q2. To recover the reduced demand of
the commodity, production is also lowered which ultimately results in the shift in the
aggregate supply to the left that is from AS1 to AS2. There may is heavy decline or recession