Economics Assignment: Analysis of Production, Labour Market and Price Level of Singaporean Economy

ECONOMICS ASSIGNMENT

Table of contents
1.0 Introduction..........................................................................................................................3
2.0 Production and output performance analysis of the economy.............................................3
2.1 GDP, GDP growth and per capita GDP of the economy.................................................3
2.2 Explanation of the measurement of the economic indicators...........................................5
2.3 Explanation of the performance trends of the economy...................................................5
2.4 Government measures adopted to achieve the performance of Singaporean economy...6
3.0 labour market analysis of the economy................................................................................7
3.1 Definition of unemployment and its types.......................................................................7
3.2 Type of unemployment in case of Singapore and its reasons..........................................7
3.3 Unemployment trends in the Singaporean economy........................................................8
3.4 Explanation of the government’s measure to achieve full employment..........................9
4.0 Price level analysis of the economy...................................................................................10
4.1 Inflation and the causes of inflation...............................................................................10
4.2 Inflation trend in the economy of Singapore..................................................................10
4.3 Causes of inflation in the Singaporean economy...........................................................11
4.4 Government’s action to stabilise the prices of the market.............................................12
5.0 Conclusion..........................................................................................................................12
Reference..................................................................................................................................14

1.0 Introduction
Economic performance is the most important identity of an economy. This paper considers
the economy of Singapore and discusses the performance of the economy in the last 7 years.
The research encompasses the development of different sectors of the economy along with
the corresponding policies of the government. Singapore is one of the most powerful
economies of Asia continent (Aysan, Danis & Ozturk, 2017). One of the best features about
the Singaporean economy is that it is very much favourable for the businesses. In addition to
that, the performance of the country in terms of economy has also been very consistent in the
last few years. The country is the third largest economy in the world in terms of per capita
GDP measured in PPP. New businesses get a lot of benefit in the Singaporean economy due
to the fact that, the tax rate for the commercial bodies is very low. The corruption level of the
economy and the administration of the country is minimal reducing any kinds of hassle for
the new and foreign businesses operating in the economy. The aim of this paper is to discuss
in detail the performance of different mechanisms of the economy that provides a boost to the
economic development. These include the production output system of the economy, the
labour market and the price mechanism and market of the economy.
2.0 Production and output performance analysis of the economy
2.1 GDP, GDP growth and per capita GDP of the economy
In terms of the Gross Domestic Product of the economy, Singapore has performed
consistently compared any other countries of the world. The global financial crisis had almost
no impacts on the economic development of the economy. Singapore is the second largest
free market in the world whose freedom score is around 88.8 (Rana, 2017). The economy
went in to recession in the year 1985 and since then the government of the country has been
following a liberalised policies in order to make the economy an attractive place for business.
Since the year 2009, while most of the other markets had lost the credibility as a business
destination, Singapore experienced an increase in the investment inflow from aboard. This
can be seen from the increasing GDP of the country after the year 2009 (Schnabl & Spantig,
2016). As per the figure of the year 2017, the GDP of the country stands at 349.7 billion US
dollars.

2008 2009 2010 2011 2012 2013 2014 2015 2016
0
50000000000
100000000000
150000000000
200000000000
250000000000
300000000000
350000000000
GDP of singapore
Series1
Figure 1: The GDP of Singapore over the years
(Source: Pang, 2017)
The continuous growth in the economy can be attributed to the prudent monetary policies of
the government as well. In addition to that the government, over the years, have also
managed to keep the legal structure of the economy transparent as well. These features of the
Singaporean economy along with the higher labour freedom have resulted in an increase in
the new business development and foreign investment in the Singaporean economy.
According to the figure of the year 2017, the GDP growth rate of the economy is around
3.6% which can be considered very reasonable (Chiu, 2018). The active industry oriented
fiscal and monetary policies of the Singaporean government adds to the attractiveness of the
Singaporean economy.
2009 2010 2011 2012 2013 2014 2015 2016
0
10000
20000
30000
40000
50000
60000
GDP per capita
GDP per capita
Figure 2: The per capita GDP of Singapore