Singapore Economic Growth for the Period 2004 - 2015 Paper Example

Introduction

Singapore, a young nation that gained its independence in 1965 has recorded positive economic growth over the recent years. In the years 2013 - 2015, Singapore GDP rose by 3.1%. This was with 18.9% current accounts balances of GDP and 4.2% fiscal balance. This shows a replica of the achievements it has made over the years. Challenges are enormous, but positivity and right initiatives with conducive business environments have made it possible for the strides taken. The period between 2004 to 2015 of Singapore economic journey is marred with exciting challenges that are unique. The data collected in 2011 showed that Singapore population was 5.5 million people. The analysis made then demonstrated that the GDP per capita was 59711 USD (current ratings).

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Significant reforms undertaken within this years frame gears toward making Singapore a center for the world economy. The changes have helped shape up things toward realizing the goals, (Tan, 2012). Political pressures also play on the goals set and benefits that citizens received and the country as a whole. One of the issue that drawn severe criticism on political grounds was on whether foreign workers should or should not be allowed into the country. The agreements reached to have the foreigners accommodated and have transformed the countries economy. Although, it is reported that the process is becoming a problem where now, there are more illegal foreigners in Singapore.

Singapore GDP per sectors shows different capabilities the country has as well as exposes their weaknesses. Although GDP growth in 2017 was estimated at 3.6%, this trend has not been smooth. The period from 2004 - 2010 with other specific years to 2015 showed unstable growths. Agriculture sectors recorded 0% GDP, industry 26.6%, and services 73.4% this is in a wrap up to the beginning of the year 2016. This shows the economic levels the country has been to and their weaknesses. With a young population and being in self-rule for such a short period, the success made are tremendous and indicate a favorable position globally. Singapore is ranked 39th globally for GDP purchasing power parity (PPP). The unemployment stands at 2.1%, (Tan, 2012).

Production Output

The report that was made in the year 2011 shows that Singapore was doing well on the exports of some products like machinery/ electrical while on others they were importing more than they were exporting. Machinery/ electrical total exports were 43% while total imports 37%. Mineral products that they have less control over stood at 20% on export markets, compared to 33% of what was imported. Products resulting from Chemical industries and allied companies export was at 9% with import rated at 5%, (Tan, 2012). This shows that on items that have space to increase their value Singapore did well as compared to their pre IOUs records and standards attained by other countries of similar measures and experiencing similar challenges. The table below shows how imports and exports compared to the year 2011.

The two figure shows that the export values registered for Singapore country in the year 2011 were higher than what they imported for local use. This is a good signal of development and sustainability. If a state can produce more than it needs and supply to developing countries, then it shows how well they are in assisting their sisters' nations in making sound living standards. In so doing they develop themselves even more. The contrast is seen on things that they have no control of like the natural resources. The imports of natural resources are higher than what they export. Even the summations made for the imports and exports of other small products and services shows that the commodities take the highest share at 20% while imports share stands at 16%.

Service delivery for Singapore has been rated highest in comparisons with even what is recorded in developed countries like the US. At staggering levels of 73.9%, it's the best rating that they may want to achieve. In the year 2017, SMRT a globally founded corporation gave 59-star awards to Singapore citizens. Also, the function gave 446 winners from Singapore with a Gold Awards for the category of Excellent Service Award 2017 while 780 others got Silver Award for the same types. This was with other 12 getting an Outstanding Award under the category of Kindness Award for Transport of the year 2017. These are the indicators signifying the height Singapore community has elevated themselves to on matters of service delivery, (Economic Policy Management in Singapore. by Lim, 1996)

Service is a crucial factor in any business undertaking. Proper facilities can encourage buying or even products that are considered relatively uncompetitive. Appropriate investments in giving adequate services to customers contribute mainly to the amount of sales volumes reached or earned for a particular process. Many countries are yet to learn the importance of establishments for proper sales services networks and how to control them. It is easy to monitor the kind of service given to any customer or a business enterprise. The supervisors need to samples various customers that have been served by a particular industry employee or how they generally feel of the treatment that they got while acquiring their items of concern. It is difficult for a customer to lie about the feelings they experienced while buying anything. The customers' reactions fall very close to what exactly happens at a particular business venture. So, with these findings of services delivery by the Singapore citizens, then one needs to take them as they are - golden truth.

Markets and Prices

Singapore recorded the lowest sales on their STI, which stands for Singapore Stock Market in the year 2003. On this year, they made 1213.85 sales for the whole year. The highest sales on STI was in the year 2017 when they achieved total sales of 3875.77. From their lowest sales made in 2003 lessons were learned. The years that followed showed a determined country led by their leaders and key stakeholders. Various policies and decisions were taken on how they were to reverse their current position. The fruits were visible as the years that followed registered a sharp rise in the sales with the peak being the year 2017, (Economic Strategy Committee (ESC), 2010).

Since the stock exchange value of any country will depict the economic position of a state, it forms an item of concerns while establishing economic development gained by any nation. A nation or a region recording poor stock exchanges shows that their producing units and industries are not doing well to face out competition put by other sectors elsewhere from other countries. For any nation growing in its outputs, their productions will experience a proportionate growth hence registering profits that convert positive on the stock markets. A company's shares increases or becomes good and of value when they are recording good benefits which, are stable and shows consistency in years that are ahead. On the stocks, Singapore's industries gained stability at the beginning of the year 2004 and have been building on this over the years. The profits being registered has been rising year after year with few companies recording few losses which, are not sustained. The prices go hand in hand with the quality given. Singapore prices are favorable that's why they can compete favorably with other countries in the export markets and makes more exports than other countries.

Unemployment

Unemployment mostly among the youths is a concern in many countries, even the developed ones like US and Russia. Keen to note is that though the economy is picking in most states, unemployment remains of concern. This can be attributed to the facts that newer ways of productions that are mechanisms come with the new mechanizations. Hence, the human labor is reduced and relieve workers as only a few workers may be required to operate the new machines made. Singapore has faced the unemployment problems and sometimes other times the issues have been used by politicians who have been giving pledges on how they will handle the problems when they are elected into offices, (Economic Strategy Committee (ESC), 2010).

Highest unemployment levels in Singapore were experienced in the year 2009. With less than 5.5 million total population, 2.3% of its people were unemployed. In the previous year, they were hard hit with a financial crisis which, the economist attributed to the unemployment levels reached. Structural unemployment hits Singapore citizens now and then. Structural unemployment is more severe than other forms of unemployment. It has to be dealt with by the governments and key stakeholders, (Chan & Koh, 2002). The figure below shows roughly the patterns that unemployment's have taken from the year 2009 to 2017.

The solutions to the unemployment in Singapore has been mainly explained by the government operatives and spokespersons as well as the Prime Minister himself. It has been a hard task to tell how the problem will be ended as some of the people fall under the specific group that would find it difficult to be absorbed anywhere. The other group falls under the ones who are qualified, but they do not get the information on various openings from industries requiring services that they are skilled. This handle goes to the job seekers as they are to be more vigilant to seek opportunities given at different factories and industries. The governments are also trying to establish more sectors which deal with a variety of indigenous materials productions. There are a group of workers who were relieved as their skills didn't match the demands of the market. The people who were doing manufactures of old accustomed products. As the government has been planning on reviving these factories, more efforts are put in place in coming up with more factories and activities that create opportunities for the citizens to work on, (Economic Strategy Committee (ESC), 2010).

Inflation

Between the year 2004 - 2015, Singapore inflation levels averaged at 2.6%. Food inflations have been the highest at 1.5%. This has been attributed to the facts that Singapore has no better-laid agriculture procedures that produce food products that can feed the country's population. High inflation levels affect the negative economic growth of a nation. The high inflations on purchasing produce, like food increase production cost, cost of living, transportation costs, as well as other related costs. This adversely affects the economy of a country negatively. Though Singapore did not experience high inflations between 2004 - 2015, food acquisition and imports, as well as transportation, affected the economy, (Chan & Koh, 2002).

Conclusion

In conclusion, Singapore is one of the few countries on the globe that recorded relatively good economic growth for the period 2004 - 2015. Although it was hit with marketing problems in 2003 where it made its lowest stock market sales. However, this was short-lived, and the country got back on its feet and recorded the highest sales on the STI in 2007 standing at 3875.77. Productions made have been positive and have achieved great heights on the world records in rating. Service delivery has been excellent and helped the country sell most of the products abroad and locally. However, unemployment's and inflations rates are of concerns, and much should be done to control them.

References

Corporate Citizenship in Singapore. Saw, Swee-Hock, ( 2008). Singapore: Saw Centre for Financial Studies. Call N...