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The Economy of Singapore (Doc)

   

Added on  2020-03-28

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Running head: SINGAPORE ECONOMY 1Singapore EconomyName Institution
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SINGAPORE ECONOMY 2Introduction:The Singaporean economy displays an exceedingly developed trade-oriented marketeconomy. The economy is ranked the greatest open one globally, 7 least corrupt country, recordpro-business country, with low rates of taxation of 14% of the Gross Domestic Product.Singapore is third highest per capita GDP based on PPP (Purchasing Power Parity). Theeconomy is protuberant FDI outflow financier internationally. The economy has profited frominward Foreign Direct Investment flow from global investors besides institutions due to theeconomy’s appealing investment environment and a stable atmosphere politically. The economy of Singapore is well referred as the regional hub for the management ofwealth as a result of its electronics, services as well as chemicals exports that avail leadingrevenue source. Via such a large revenue, Singaporean economy can buy raw-goods besidesnatural resources which it lacks (Economics, 2013). The outlook of this economy seems to haveturned in to being less depressed subsequent to the commencement of year 2017, with firstquarter growth surpassing the estimated figures whereas the administration expecting a greaterGDP estimates in 2017. The economy remains on the modest growth path. Yet, it is rather inhibited by the arrayof anxious imbalances, astonishing suppleness is reappearing. The Singaporean industrialproduction has documented additional month of promising growth in April 2007, reinforced bythe protuberant performance in electronic classification besides PMI reading for the quarter 2hence additionally gesturing the expansionary conditions (Chew, Ng & Fan, 2016). Though, thelatest exports data on the economy of Singapore points towards external demand for its productscushioning the slowdown of the quarter-one could be chilling, it would then weighmanufacturing activities.
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SINGAPORE ECONOMY 3Weak wage growth but still huge household indebtedness locally tolerate to confineprivate consumption, even in the face of April’s second month of promising growth retail sales toparticular improvement in a row. The expenditure by household has been excruciating from closecorrection in houses’ prices since hitting its peak in 2013. This correction appears not to beeasing because of indication that volumes of transaction continually grow. Production output performance analysis:The current prices real GDP in Singapore stands at 291.9 billion USD. This has grownfrom 100.7% billion USD in year 1997 to 296.97 billion USD in year 2016. It has been growingaveragely at the rate of 6.3% per year. The Singaporean real-GDP propagated 2.5 percent YOY2017 June following a growth of 2.5 percent in previous quarter. Singaporean real-GDP growthYOY data quarterly updated from year 1976 to 2017 June indicates a mean rate of growth 7.50percent. The growth rate of real GDP hit an all-time higher of 19.0 percent in 2010 June and arecord time low of negative 8.8 percent in 2009 March. The Singaporean real-GDP per-capita incurrent prices is 51, 431.0 US dollars in year 2017. Singaporean real-GDP per-capita prolongedfrom 26, 387.4 billion USD in year 1997 to 52, 960.730 billion USD in 2016 skyrocketingaveragely at the rate of 4.2 percent annually. The economy of Singapore recovered in quarter-two, however, it declined beneath themarket anticipation. The Singaporean economy resumed the growth in quarter-two of 2017,primarily on backdrop of the huge manufacturing activities. The upshot followed the contractionin first-quarter which stood principally wedged by base impacts because of inspiring growth ofquarter-four, and by outmoded Singapore’s GDP numbers volatility. As a result of hugeestimates that the Ministry of Trade and Industry published on 14th July, the GDP grew by 0.4%in second-quarter from previous quarter at SAAR), likening to first-quarter’s reviewed 1.9%
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SINGAPORE ECONOMY 4contraction (previously reported: -1.30 percent qoq SAAR), yet lessening beneath marketexpectations. The rebirth followed the manufacturing sector hastening besides the reversals in theservices and construction businesses. Manufacturing grew 2.40 percent qoq SAAR, upwardsfrom the first-quarter mild 0.4% rise. On the other hand, the service industry expanded 0.4% qoqin second quarter, relative to previous 2.70% construction of the previous year. The constructionindustry also recovered in qoq footing, growing 4.3% in 2nd quarter, subsequent to sharp 14.4%contraction witnessed in first quarter. The GDP expanded 2.50% in quarter two in year-on-year basis thereby matching the firstquarter‘s revised 2.50 percent growth (past reported: +2.70 year-on-year) alongside FocusEconomics Consensus Forecast. The growth arose following an eighty percent expansion inmanufacturing industry (first quarter: +8.50% YOY), led by the electronics growth and precisionengineering clusters. The manufacturing expansion as indicated in the previous quarter, remainedunderpinned by the stronger external demand for the semiconductors alongside being manifestedin encouraging figures for the industrial production that expanded for 10th month in a row inMay. The service industry growth on YOY terms, augmented from 1st quarter’s 1.40 percent to1.70 percent in quarter two. Firmer demand superficially accounted for the minor accelerationhence benefiting transportation and succeeding storage and business service sub industries.Construction industry on the contrary continued with contraction per annum in quarter 2 anddecreased 5.60% that represent a minor improvement from quarter one’s 6.10% contraction.Both public- and private sector construction activity continued to weigh on negative performanceof construction industry which is still suffering property prices correction consequences that
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