Introduction in Singapore averaged 6.79 percent from 1975
June 7, 2019
Singapore authoritatively the Republic
of Singapore, is a sovereign city-state and island nation in Southeast Asia. It
lies one degree (137 kilometers (85 mi)) north of the equator, at the southern
tip of the Malay Peninsula, with Indonesia’s Riau Islands toward the south and
Peninsular Malaysia toward the north. Singapore’s region comprises of one fundamental
island alongside 62 different islets. Since autonomy, broad land recovery has
expanded its aggregate size by 23% (130 square kilometers (50 sq. mi)).
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GDP is a monetary measure of the market
value of all final goods and services produced within country’s border in a
stipulated period of time. It measures national income and output for country’s
Singapore has one of the highest GDP per
capita in the world. Its economy depends on foreign trade; both from port
activities and from exports of electronic components and refined oil. It is a
leading foreign direct investment recipient due to its status of one of the
freest, most competitive and most business-friendly economies in the world.
The Gross Domestic Product (GDP) in
Singapore expanded 8.80 percent in the third quarter of 2017 compared to the
previous quarter. GDP Growth Rate in Singapore averaged 6.79 percent from 1975
– 2017, reaching an all-time high of 37.20 percent in the first quarter of 2010
and a record low of -13.50 percent in the fourth quarter of 2008.
Real GDP is a macroeconomic measure of
the value of the economic output adjusted for price changing i.e. inflation or
Singapore’s highest real GDP was 19% in June
2010 and lowest was -8.8% in March 2009.
Finance and insurance sector has the
continuous positive contribution in the country’s GDP.
Manufacturing sector was earlier
contributing but now it has a negative contribution in GDP.
Construction sector has lowest
contribution in GDP.
Nominal GDP is gross domestic product
(GDP) is evaluated at current market prices, GDP being the monetary value of
all the finished goods and services produced within a country’s borders in a
specific time period.
Singapore’s Nominal GDP achieved 79.3
Billion USD in Sep 2017, and 76.2 Billion USD in the past quarter. Ostensible
GDP in Singapore is refreshed quarterly, accessible from Mar 1975 to Sep 2017,
with a normal number of 21.4 Billion USD. The information achieved an
unsurpassed high of 79.3 Billion USD in Sep 2017 and a record low of 1.4 Billion
USD in Sep 1975. Singapore’s GDP extended 5.2 % YoY in Sep 2017. Its GDP
deflator (implicit price deflator) expanded 0.8 % in Sep 2017. Singapore’s GDP
Per Capita achieved 52,962.0 USD in Dec 2016. Its Gross Savings Rate was
measured at 45.8 % in Dec 2016.
PURCHASING POWER PARITY (PPP)
PPP is an economic theory that states
that the exchange rate between two currencies is equal to the ratio of the
currencies’ respective purchasing power.
The GDP per capita in Singapore was
recorded last at 81443.40 US dollars in 2016. The GDP per Capita, in Singapore,
when balanced by Purchasing Power Parity is comparable to 458 percent of the
world’s normal. Gross domestic product per capita PPP in Singapore found the
middle value of 57811.61 USD from 1990 until 2016, achieving a record-breaking
high of 81443.40 USD in 2016 and a record low of 34339.70 USD in 1990.
In 2015, 16.25 percent in industry and
82.67 percent in the service sector. There is very low employment in the
In the past 10 years, the public sector
workforce grew at 2.5% which is lower than Singapore’s labor force growth 4.1%
per annum over the same period. This is expected that the growth of public
sector will be maintained at this pace only over the next few years.
Monetary policy is a policy which
consists of the actions taken by currency board along with the central bank and
other money regulatory committee which determines the rate and size for the
growth of money supply which also affects the interest rates. Also, to maintain
monetary policy modification of interest rates, buying and selling of
government bonds and the bank reserves is required.
SINGAPORE’S MONETARY POLICY
Singapore’s monetary policy is being
controlled by MONETARY AUTHORITY OF SINGAPORE (MAS), as they control the supply
of money to business and consumers in Singapore, also targets the interest and
inflation rate to encourage price of goods and services to promote economic
growth and stability in the economy.
Countries like China and the United States
of America where central banks take decisions to raise and cut interest rates,
whereas Singapore use exchanges rates to determine the rate of Singapore
Dollar. MAC says Singapore has an open economy, which makes the exchange rate
as a best tool to manage inflation.
MAS does not control the domestic
interest rates, its control has been fully took over by central bank of
Singapore. Borrowing cost are being determined by US interest rates for the
future movements of the Singapore Dollars.
MAS review its monetary policy twice a
year i.e., in April and October to ensure the consistency in economic
fundamentals and market conditions. MAS takes decisions for the assessment of
Singapore’s economic and inflation outlook.
time of the April 2017 policy review, underlying growth momentum in Singapore’s
major trading partners had firmed, alongside the rise in global oil prices, a
turnaround in the IT cycle, and signs of an incipient investment pickup.
Domestically, the level of economic activity in the first quarter remained
high, notwithstanding a sequential pullback in growth. Moreover, the underlying
momentum in the economy was assessed to be intact, with growth buoyed by
improving external demand, particularly for electronics output. For 2017 as a
whole, the Singapore economy was projected to grow at a modest pace, with the
composition of growth uneven, driven by a narrow cluster of externally oriented