Economics - How a Shrinking Gdp Affects the Economy of Singapore

Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4-5% GDP and the trade deficit accounted for 20% GDP in which approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food prices affect detrimental to the high inflation in Vietnam.(Figure 2)

The United States inflation rates are a problem, if the government were to control them then the United States would flourish from a “B+” economy to a “A” economy. In the United States (September, 2015) consumer prices went up 1.5%,

“Provide Summary Level Paper (limit 10 pages) “Purpose and Practice of Inflation Forecasting by Nation” – for insertion after the “Measures of Inflation”

It is crucial for the government to reinforce other factors that decrease the controversial effect of the boom in the inflation rate. For instance, increasing labor force, development in technology and a sustaining education system. Those factors will assist in moving the long-run aggregate supply curve (LRAS) towards right. It is obvious that the money demand will rise if Trump's campaign want to set the tax-cut as permanent law. Therefore, I believe with an increase in LRAS, the high price level can fixed society in a higher level of outputs, which benefits the domestic economy gradually.

It is also easy for many other companies to set up headquarter in Singapore as their starting point in Asia to make it possible to reach to its market point. In addition, Singapore is unique in different lifestyles and culture. It is also known for its capability of attracting sizable foreign investment, pro-business environment and entrepreneurs. Singapore focuses more on a knowledge based economy which can be seen in its education sysem. Furthermore, Singapore is located in the heart of Asia and it plays an important role in international

There were two major happenings that temporarily effected Singapore’s economy between 2001 and 2003—the worldwide electronics slump and the outbreak of Severe Acute Respiratory Syndrome (SARS). Both times, growth bounced back, by world demand for electronics, pharmaceuticals, other manufactured goods, and financial services. The return was mostly contributed to by the economies of its major trading partners—the United States, the European Union, Japan, and China, as well as expanding emerging markets such as India (Bureau of East Asian and Pacific Affairs, 2010). The next

This research topic is significant to the current property market in Singapore and its sudden increased demand for houses despite the economic downturn, exploring deeper as to whether the government policies were the real influential causes to this boom in property demand. It has relevance to the economic concepts of demand and supply, elasticity, inflation and monopolistic competition. This topic is worthy of investigation because it is a hot media topic in Singapore, and is widely debated in the country because it’s the most expensive household asset.[2]

Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries.

However, the increase in PMI Manufacturing from 51.3 to 53.2 indicates the weakness in first month was weather-related.United State faces a state of unemployment and although the rate is slowly cutting down it is still steady. This implies that the rate of inflation went high in the month of January so as to equitably allocate the scarce production. Economy seems to grow at lesser pace, while inflation rate grow at higher rate.Therefore, the deceleration in the actual gross domestic product in quarter four showed a declining in private inventory investment, a higher decline

With foreign manufacturing industry entering Singapore market the manufacturing sector and its share in GDP grew from 16.6% in 1965 to nearly 30 % in 1980 and in 1993 manufacturing contributed to about 28 % of the total GDP and accounted for nearly 28% of employment. Singapore’s GDP raise to 13 times between 1960 and 1999. The nation has shown greatly decrease of figure of poverty. (United Nations 2000)

“Discuss four reasons why using percentage change in nominal GDP is an inadequate measure of economic growth” (20 marks)

“The threat to Singapore is not Malaysia,” John Vautrain, a Singapore-based senior vice-president at U.S. energy consultancy Purvin & Gertz Inc., said in a telephone interview that if there was a threat to Singapore, people talk about Shanghai or the Arab Gulf. Shanghai is obviously a much larger consumption center, but the problem is there’s not much free trade. It’s not a shipping hub the way that Singapore

The Singapore economy had proved its resilience during the worst post-war recession and experience exceptionally high economic growth during the 42 years since its independence. For the period 1966-1973, the economy expanded consistently at a double-digit growth rate in real terms (Kum Poh, 1982, p.1). Gross Domestic Product (GDP) at constant prices continues to rise at an annual rate of 8 percent till 2005. With population growth at 2.1 percent, per capita GDP increased by 5.8 percent on average each year (Gesquiere, 2007, p. 12).

This study focuses on the four markets, namely Thailand, Singapore, Philippine and Malaysia with the study period from 1997 to 2013. This period is selected in order to make sure that the used data is up to date enough and it can cover sufficiently changes in the economies.

For services sector, due to mostly driven by continuous travel-related activities and domestic demand, the services sector grew from 7.1% to 12.9% contrast with first half year 2011. For the overall of GDP growth in year 2012, the services sector is expected to remain resilient which contributing 3 percentages point and expanding 5.5% compared with 2011 which only 7%. As the table shown that, the services sector is the main sector that contribute to GDP growth comprise with other sector such as agriculture and construction. A table is shown below for further review.