The Economic Growth of Singapore
Nowadays, the economic growth of Singapore has been dramatic. As Singapore only has a small planet and not too many natural resources, the centre economics in Singapore focuses more on exporting and importing. Singapore was interested in industrialization and international trades. â€œThe trading economy had by the late 1950s resulted in high rates of unemployment and underemployment. The immediate task of the newly elected governmentâ€” initially charged exclusively with management of domestic affairs in 1959 and subsequently as a fully independent government in 1965â€” was to industrialize. â€ and â€œSingapore was a location for the exchange of ...view middle of the document...
From 1974 to 1984, Singapore grew their GDP again. The GDPâ€™s growth rate only have 4% compare with the growth before, the speed of the GDP growth rate was much slower. Until 1985, Singaporeâ€™s GDP growth rate showed a negative growth which was -1. 4%. Why Singapore GDP turned down instead of keeping the high speed growth was because some problems became serious, such as the problems form education, and the problems from human resources. Singapore experienced a bold restructure of its economy, and it was called â€œThe Second Industrial Revolutionâ€. After that, Singapore was back to â€œright truckâ€. â€œAmong the top financial destinations in Asia, Singapore be ranked 3rd behind Hong Kong and Tokyoâ€ (Rigg, 1988). Singaporeâ€™s GDP kept growth until 1998. In 1998, Singaporeâ€™s growth rate turned to negative again which was -1. 34%. That is because in 1997 Asian financial crisis happened and affected the whole Asian countries including Singapore. In 2001, because of a global recession and slump, the technology sector Singaporeâ€™s GDP to contract by 2.2%,
Table 8 (The World Bank)
and lots of foreign investor moved their cash out of the Singapore. ï¼ˆTable 8ï¼‰Until 2002, coming with the economic recovery in Asia, Singapore's economy started growing again. However, there was a point need to mention which is, in 2009, Singaporeâ€™s GDP decreasing again because subprime debt crisis happened in United States, and later made the global economic slowdown. At the same time, it affected the Singapore economy as well. For getting a better understanding about the Singaporeâ€™s GDP and GDP growth rate, there is a Table 2 which come with the trend line. It is helpful to know the trend of the future. From compare those two lines which show that the GDP is growth, but the GDP growth rate is going down. Which means Singaporeâ€™s economic growth rate is becoming slower even the GDP keeps increasing.
Table 3 (The World Bank)
The second topic is Singaporeâ€™s CPI which can compare with trade in Singapore even the evaluation method of the CPI is different with the one using for trade in Singapore. We can analyses from the trends of the lines from Table 2 & 3. As we can see, the CPI of Singapore has been increasing even the growth rate of GDP had negative growth. One of the reasons for the CPI of Singapore keeps increasing is that the cost of living has been increasing. â€œSingaporeâ€™s consumer prices climbed in January as transportation and healthcare costs rose amid an economic recovery that has spurred demand for goods and services.â€ (Shamim Adam, 2010). One of the reasons for increasing the cost of living is Singapore keeps having trade with other courtiers. When cheap product A is exported into Singapore, it will decrease the supplies inside of Singapore. So the price of product A will increase. When the wages of labor decrease, the CPI will unlikely keep increasing....