Economics Extended Essay

6450 WordsJul 15, 201226 Pages
How has the economic contraction in Singapore affected the country’s non-landed private residential property prices during the last 2 quarters of 2008? ____________________________________________________________________________________________________ International Baccalaureate Diploma Programme Extended Essay Economics How has the economic contraction in Singapore affected the country’s non-landed private residential property prices during the last 2 quarters of 2008? Word Count: 3995 By: School: ACS (International) Year: 2009 International Baccalaureate - Extended Essay 1 How has the economic contraction in Singapore affected the country’s non-landed private residential property prices during the last 2 quarters…show more content…
However, the US subprime crisis hit the global economy hard, and soon, many countries entered recessions (Mu, 2009). Major corporations were in serious trouble, seen from the collapse of the Lehman Brothers and near-collapse of AIG saved only by a last-minute government bailout (Colliers, 2009, p.12). Despite major economic powers introducing expansionary policies and injecting huge sums of money to bailout key corporations and stimulate the economy (Colliers, 2009, p.2), the global scene shows little signs of improvement. There has long been a saying that when US sneezes, Asia catches a cold. Amid such a severe financial crisis worldwide, not even the stable Singapore economy could escape its effects. As the economy contracted by 0.3% and 2.6% in the third and fourth quarter of 2008 respectively (Colliers, 2009, p.1), property prices plunged dramatically and economic confidence hit rock bottom (Colliers, 2009, p.2), an outcome nobody would have predicted half a year ago during the peak of the Singapore property market (CB Richard Ellis, 2009, p.5). International Baccalaureate - Extended Essay 4 How has the economic contraction in Singapore affected the country’s non-landed private residential property prices during the last 2 quarters of 2008?
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