Singapore Economy: GDP, Labor Market, Price Levels and Gov Measures

This report provides a comprehensive overview of the Singaporean economy, focusing on key indicators such as GDP growth rate, GDP per capita, labor market dynamics, and price level analysis. It examines the factors contributing to Singapore's economic development, including its stable political condition, business-friendly environment, and strategic location. The report analyzes various types of unemployment and their trends in Singapore, along with government measures to achieve full employment. It also discusses inflation trends and government strategies for maintaining stable prices. Furthermore, the report explores the government's role in managing the economy through fiscal and monetary policies, including the implementation of comprehensive tax plans and attracting foreign investments. The conclusion highlights Singapore's success in maintaining budgetary equilibrium, achieving economic growth, and stabilizing the financial market, which has fostered investor confidence. The analysis draws upon various sources, including reports from government agencies, economic research papers, and news articles, to provide a well-rounded perspective on the Singaporean economy. Desklib provides similar solved assignments for students.

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Overview on Singapore Economy

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Introduction
Singapore is a growing global business centre, located at the east end, and the western sea
routes converge. The static government guides the country with the whole rule of law and an
efficient regulatory system. The state currently occupies the third position as the most
globalised economies in the world. It is one of the richest countries thanks to Singapore's
average trust in saving their money for stressful days. This habit is isolated from the
government for a sustainable economy and social security. (Weiner & Cline, 2010)
The development of the Singapore economy is because of a stable political condition that has
made a market-situated exchange economy. The Singapore government has brought forth
business visionaries by keeping charges low. The Singapore star business takes only a couple
of days to shape an organization that is a great affair for business visionaries from whatever is
left of the world. The Singapore charge framework is very well disposed. Offers motivating
forces, charge exceptions and decreased assessment rates for recently settled organizations.
Singapore's economy is quite competent in English, which becomes an attractive destination
for multinational corporations. In 2018, the unemployment rate had decreased from 4.0% to
1.2%.
Product Output Performance Analysis

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Meaning of GDP
(GDP) is a strategy for estimating the monetary execution of a nation amid a given period. It
is the best monetary pointer to assess the economy of the nation. There are three different
ways to ascertain a nation's (GDP):
● Basis of expenses: how much money spent,
● The base of production: how many goods and services sold, and
● Income basis: the amount of income obtained.
GDP Growth Rate
From 1999 to 2018, Singapore's GDP grew by 6.8% on average. The GDP of Singapore's
economy worked to recover in 2010, while it increased by 0.6% in 2008. The economy has
seen a path of sustainable growth. Since 2014, Singapore's GDP has grown 4.8% on average.
Singapore's economy has the benefit of an enormous inflow of remote direct venture (FDI)
because of its alluring speculation condition. Singapore's exhaustive and far reaching
improvement methodology is one of the principle explanations behind its development story.
The economy sends out synthetic and electronic items in huge amounts and imports crude
materials and purges them for re-trade.
In 2017, Singapore faced a gross domestic product of 400,089.1 at current market prices
(millions of dollars). It also had foreign currency reserves of 440,438.1 (millions of dollars)
at the end of the year.

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("Singapore GDP per capita PPP | 2019 | Data | Chart | Calendar | Forecast", 2019)
GDP Per Capita Analysis
GDP per capita is calculated as gross domestic product divided by the population in the
middle of the year. GDP is the sum of the aggregate total for all residents in the economy,
subtracting any subsidy that is not included in the cost of products and adding any tax on the
product. It is calculated without including the deductions for the depletion of natural
resources or the depreciation of the worn asset. The GDP per capita in Singapore was
registered for the last time at USD 85535.38 in 2017 when adjusted for PPP. GDP per capita
in Singapore, when adjusted for purchasing power parity, is equivalent to 481 per cent of the
world average. GDP per capita in Singapore averaged USD 58,926.27 from 1990 to 2017,
reaching an all-time high of USD 85535.38 in 2017 and a record low of USD 34344.70 in
1990. ("Singapore GDP per capita PPP | 2019 | Data | Chart | Calendar | Forecast", 2019)
Government measures to achieve the economic performance
As per the administration, the economy ought to have a development of 3-5 percent in 2019.
Over the most recent five years, genuine normal salaries in Singapore have expanded by 10
percent. In the meantime, the country is free from issues like stale wages and joblessness that
are dangers to many created nations, said Yacob. (Siddiqui, 2018)
The Yacob Administration anticipated a spending of US $ 12 billion throughout the following
five years in money related help and endowments for another general medical coverage plan
called MediShield Life, which will be executed before the finish of 2019.
Labour Market Analysis
Types of Unemployment: There are 9 types of unemployment where 5 are quite dominat to
Singapore economy.

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1. Voluntary Unemployment
2. Casual Unemployment
3. Frictional Unemployment
4. Structural Unemployment
5. Seasonal Unemployment
Unemployment Trend in Singapore
According to the Ministry of Labor of Singapore, the unemployment rate increased in the
first quarter of 2019. The unemployment rate in Singapore rose to 2.20% in the fourth quarter
of 2018, from 2.10% in the third quarter of 2018. Unemployment in Singapore averaged
2.43% from 1986 to 2018, reaching an all-time high of 6% in the first quarter of 1986 and a
historical low of 1.40% in the second quarter of 1990. This type of unemployment is almost
as natural unemployment we also call Nairu.
Government measures to achieve the Full Employment
Since 2012, Singapore's populace has developed from 1.8 million to 5.9 million with an
expansion in outside labourers' funds. Those beyond 65 a 1100,000 years old from an
expected 1100,000 by the ability office and the national populace, and anticipate that
individuals beyond 65 three 2025 years old three-thirds by 2025. (Siddiqui, 2018). Likewise,
this is a 2.9% development rate on genuine wages for the following year. As per a study
composed by the Singapore Human Resources Institute and Align Group, the general
employment fulfilment record is 65 and is relied upon to develop.
Price Level Analysis

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Inflation Trends
As a result of the rental lodging market, low oil costs and powerless financial development,
Singapore customer costs have been contrarily influenced. Be that as it may, as per market
analysts, the national bank won't surrender financial approach to cover this long expansion
funk. The Monetary Authority of Singapore (MAS) must deal with its Singapore dollar
approach to control the valuation for the cash. This was Singapore's most extended negative
expansion and its fourteenth back to back month since the worldwide monetary emergency.
This brought about a 0.2% negative swelling in the most recent year.
Looking at the current conditions, we seem to be in a phase of contraction of the economic
cycle, which coincides with the stage of the average bear in the sequence of the stock market.
These phases are characterised by:
• economic slowdown
• a bearish US stock market with pan-selling investors
• GDP growth around or below 2%
• Investors are looking for security securities, including defensive stocks
The fourth quarter of 2018, Singapore CPI declined by 0.2% and reversed the impact of a
1.1% increase in Q3. According to the seasonally adjusted criterion, the CPI fell by 0.1% in
the fourth quarter. (Huff, 2013)
The Singapore Government receives a mindful expense strategy. This implies charge strategy
is basically used to convey basic products and ventures in Singapore. In this way, open
spending on residential items and administrations in Singapore represents just a little piece of

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national pay. Thus, Singapore's legislature has reliably accomplished unobtrusive spending
plan surpluses, aside from the long periods of the retreat, as it recorded spending shortfalls
because of the execution of monetary improvement. This has empowered the Singapore
government to gather an extensive number of stores in late decades.
Government measures to achieve Stable Prices
To control the higher prices of imports such as oil and food, the MAS allowed the Singapore
dollar to appreciate. The National Environment Agency (NEA) is adopting management
models to make prepared food accessible. To have a good export and a better economy, the
country follows the fixed exchange rate. Mr Chan Chun Sing, led by the high minister of
trade, industry and public development, watches over the massive increase in food prices and
daily necessities. RPWG has collaborated with supermarkets, food courts, street vendors and
wholesalers to promote the availability of cheaper alternatives for uncooked food products.
Conclusion
The main economic objectives of Singapore are the maintenance of budgetary equilibrium
and economic growth. The implementation of a comprehensive tax plan in Singapore is
compelling in focusing on explicit gatherings. Your essential salary is roundabout duties
rather than direct charges. They likewise pull in remote speculations to upgrade their income.
Singapore's GDP has additionally improved as of late. He figured out how to illuminate his
joblessness that is at present in low joblessness. It likewise balances out the budgetary market
that enables Singapore to achieve a global monetary market. This usage has likewise helped
Singapore accomplish trust in speculators effectively. Indeed, even the preparation programs
for non-particular specialists executed by the legislature have prevailing with regards to
disposing of basic joblessness.There are some shortcomings for expansive fiscal policies,

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such as the small multiplier effect, the displacement conclusion, the delay and the
inflexibility. It is difficult to improve all sectors of the economy to grow simultaneously with
a single policy.
References
Sattinger, M. (2016). Income distribution. Cheltenham, Singapore: Edward Elgar Publishing
Limited.
Singapore GDP per capita PPP | 2019 | Data | Chart | Calendar | Forecast. (2019). Retrieved
from https://tradingeconomics.com/singapore/gdp-per-capita-ppp
Singapore: Key Employment Trends for 2018. (2019). Retrieved from
https://www.morganlewis.com/pubs/singapore-key-employment-trends-for-2018
Trends and Shifts in Employment: Singapore’s Workforce. (2019). Retrieved from
https://www.csc.gov.sg/articles/trends-and-shifts-in-employment-singapore-s-workforce
Essays, UK. (November 2018). Singapore Economy Introduction. Retrieved from
https://www.ukessays.com/essays/economics/the-economy-of-singapore-economics-
essay.php?vref=1
Weiner, R., & Cline, J. (2010). Singapore Dynamics. Lanham: Scarecrow Press.
The role of government in the Singapore economy / Florian von Alten | National Library of
Australia. (2019). Retrieved from https://catalogue.nla.gov.au/Record/2468997
SHIN, J. (2012). THE ROLE OF THE STATE IN THE INCREASINGLY GLOBALIZED
ECONOMY: IMPLICATIONS FOR SINGAPORE. The Singapore Economic Review,
50(01), 103-116. doi: 10.1142/s0217590805001895

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Siddiqui, K. (2018). The Political Economy of Development in Singapore. Research In
Applied Economics, 2(2). doi: 10.5296/rae.v2i2.524
Singapore Inflation Rate (CPI) - FocusEconomics. (2019). Retrieved from https://www.focus-
economics.com/country-indicator/singapore/inflation
Huff, W. (2013). The Economic Growth of Singapore. Cambridge: Cambridge University
Press.
Singapore's 2018 growth forecast upgraded to 3.3%: MAS survey. (2019). Retrieved from
https://www.channelnewsasia.com/news/singapore/singapore-s-2018-growth-forecast-
upgraded-to-3-3-mas-survey-11023700