Analysis of Singapore's GDP and Inflation figures.

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                           Pre-Module Assignment

Teacher: Mr. Rodney Sim

Class code: Bsc15C

Name: Tan Nianbo

Date: 05.12.2011

Question 1

According to the above forecast of GDP growth of Singapore, we know that it stand at 5.3% instead of 6.2% earlier. Therefore, it clearly indicates that the forecast of Singapore’s GDP growth downgrade.

Gross Domestic Product, it refers that during a period of time, the production of all final goods and labor value from the economy of a country or region, it is often recognized as the best index to measure national economic conditions. It not only reflects a country's economic performance, but also reflects a country's national strength and wealth.

The importance of GDP can not be ignored, especially when it is mentioned in the same breath with market expectations, the actual economic growth rate or recession rate often affects the trend of financial markets. The higher the data shows that the more driving economic growth.

GDP represents all the economic activity within the country, reflects the basic situation for economic growth, it is used to analyze current status of the state's economic development. GDP growth decelerated, indicating that the economy is in contraction phase, consumer demand of the production will decrease. In general, the higher GDP of Singapore means the better economic development, rising interest rate, its currency exchange rate is strong.

There are so many different elements that affect the GDP growth of Singapore, in my opinion, one of the reasons is global economy. As a result of the global economic downturn, the economy of Singapore has been shrinking dramatically. Singapore's economy can not maintain the pace of strong growth in 2010, because Singapore's economy is mainly dependent on exports and exports of non-oil products and services, they occupy for more than half of its GDP, which makes the economy vulnerable to changes in global economic growth. Moreover, recent GDP data revisions in the US showed that economic conditions were not as robust as previously thought – indeed, aggregate activity had stalled since 2010.

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Uncertainty of U.S. economic recovery and the relative recession in the global electronics market has also led to further downturn in Singapore's export demand. As reduction of global demand, as the pillar industry of Singapore, exports of electronic products sharply shrinking is the main reason of the country's economic downturn. Singapore is one of Asia's fastest growing economies. This year, the U.S. economy maybe decline in growth rate and the global electronics industry may decline are the main danger facing by Singapore's economy.

The Monetary Authority of Singapore states “domestic economic activity fell by 6.5% in the second ...

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