As predicted last year, the Singaporean economy is gradually accelerating much faster than anticipated. Forecasted by the Ministry of Trade and Industry last year, projects the country’s GDP growth which was 1.0 to 1.5% -- the slowest since 2009 fallout from the Global Financial Crisis, and in accordance to this events; with the past practice, the government has put in place measures to mitigate the external headwinds and restructure the economy to re-invigorate growth.
While Singapore has not yet sunk into a full-blown recession, its fortunes are tied closely to those of the world economy and the outlook there is far from positive. As estimated, Singapore’s growth could only come up to 0.6% only; this is expected in the July to September period (2017), compared with the same quarter a year ago, this is the weakest rate since 2009.
However, with the economists’ warning that the slowdown will continue to persist, forecasters expect a full-year growth to arrive at the lower end of 1% to 2% and only slightly higher within the coming years.
There are several aspects that can be considered and should be examined thoroughly. The country is now making its move to regain its loss. Singapore’s very open and trade-dependent economy was buffeted by the general global cynical downturn, the sustained slump oil prices severely impacted its rig building and oil related industries.
And as Beijing restructures its own economy, Singapore’s demand from China has also slowed down.
Labour shortage also plays a big part with Singapore’s economy, although, cracks are already emerging in the market. In the third quarter of the year 2016, total employment fell for the second time since the 2009 global financial crisis. Singapore’s labour shortage is probably the biggest challenge for the country’s growth, and holds a big part with the country’s economic restructuring.
With the challenges Singapore is facing, the country still shows progress with their economy. Economists expects Singapore’s 2017 budget to provide more support to companies to alleviate further retrenchments and support laid-off workers. With this, it is expected for Singapore to have a better progress with their economy status. It might be slow, as what the statistics have predicted, but for as long as it’s going positively, Singapore will end up rising.