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. “The trading economy had by the late 1950s resulted in high rates of unemployment and underemployment. The immediate task of the newly elected government— initially charged exclusively with management of domestic affairs in 1959 and subsequently as a fully independent government in 1965— was to industrialize. ” and “Singapore was a location for the exchange of merchandise from Europe, India and China, and a market for the produce of the Malayan Archipelago, Thailand, Vietnam and Cambodia” demonstrate that Singapore works in economics as a middleman and a producer (Chua, 1997). The consequence of being the “centre” is higher trade rate (from Table 1) and affected by the economy of the world. There are lots of things can be analysed from the economic growth of Singapore, such as GDP, GNP.
Table 1 (The World Bank)
Table 2 (The World Bank)
Table 2 ( Center for International Comparisons of Production, Income and Prices (CIC), University of Pennsylvania, 2006)
The first topic can be analysed is GDP of Singapore. From the Table 2, it states that Singapore’s economic has been growing in the most of time. As Singapore became independent in 1960, Singapore’s GDP kept increasing more than 10% each year after 1965. by the sucessful policy of promoting industrial base and diversification. However, after 1975, its growth rate decreased to 6%. The reason for the decreasing was the second oil crisis, oil prices increased from US$15 in 1979 to US$39 at the beginning of 1981. Moreover, the global economy recession also influenced Singapore's economy. From 1974 to 1984, Singapore grew their GDP again. The GDP’s growth rate...