Macroeconomics: Analysis of Singapore's GDP, Inflation, Wages, Saving and Short-term Fluctuations

Running Head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Course ID

1MACROECONOMICS
Table of Contents
Analysis of topic 1: GDP and Economic Growth............................................................................2
Analysis of topic 2: Inflation and Price Level.................................................................................3
Analysis of topic 3: Wages and Unemployment.............................................................................5
Analysis of topic 4: Saving, Capital Formation, Financial Markets and Financial System............6
Analysis of topic 5: Short-term Economic Fluctuation and Aggregate Expenditure......................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

2MACROECONOMICS
Analysis of topic 1: GDP and Economic Growth
Source
https://www.channelnewsasia.com/news/business/singapore-gdp-economy-slows-q2-mti-
advance-estimates-10525080
Summary
In the second quarter, economic growth in Singapore failed to achieve the expected growth
rate. The recorded economic growth declined to 3.8 percent from the level it was in one year ago.
The advanced estimates as stated by the Ministry of Trade and Industry (MIT) explained the
recent slowdown in economic growth following a loss in momentum in both manufacturing and
service sector. This quarter manufacturing sector accounting a growth of 8.6 percent as against
9.7 percent in the last quarter. The service sector growth has also been moderated to 4.0 percent
as compared to 3.4 percent in the first quarter (channelnewsasia.com 2018). Another factor
threating economic growth in Singapore is the ongoing trade tension among China and US.
Analysis
Aggregate output of a nation is measured using the indicative measure of Gross Domestic
Product. It presents value of all goods and services in monetary terms. Agriculture,
manufacturing and service are the three pillars that contribute to GDP (Goodwin et al. 2015).
Slow growth in manufacturing and services are mainly responsible lower than expected growth
rate in Singapore. The decline in both the sector is mainly contributed from a declining demand
for these sectors. The trade tension between US and economy threats economic growth in
Singapore by reducing its export demand. A decline of import in US or China by 10 percentage
point can cause 1 or 2 percent decline in export of Singapore.
Figure 1: Slow growth in Singapore
(Source: as created by Author)