An Overview on Singapore Economy
The economy growth of Singapore has been slower than what was expected. The economic expansion happened by 2.5 % when the economists expect a 2.7% growth. Although the growth has been slow in the second quarter, it has managed to avoid a technical recession successfully. During the month of April through June, an expansion of 2.5 % took place. In the first three months of the year, there was a 1.9% contraction quarter to quarter. After that, the economy grew by 0.4 %.
Highlights of Singapore Economy
Every sector has a part to play in contributing to the economy of Singapore. Whether it is the moneylender Singapore sector, banks, or the IT sector, every contributor counts. Moreover, Trump’s ‘America First’ policy may have a major impact on Singapore and other Asian countries. Hence, it is imperative for the country’s economic status to be stable before the next political strike.
- Contribution to the nation’s economy by the manufacturing sector has risen
The manufacturing sector of Singapore constitutes about one fifth of the total economy and that fueled the growth in the second quarter. This sector went through a growth by 8 % that primarily sourced from precision engineering clusters and electronics. The momentum in the electronics department and manufacturing is robust and shall continue to remain so.
- Non uniform growth observed in Singapore
However, despite the success, the growth was not uniform and that could be a potential weakness. For instance, the construction sector’s economic growth decreased by a good 5.6 % in the second quarter. This had a negative impact on public and private sector building.
- Contributions by other sectors
Other services that comprise ⅔ of the total economy of Singapore have increased by a mere 1.7% in the second quarter. The maximum contribution in this sector was made by trade related businesses that mainly dealt with exports.
Every since the ‘America First’ policy of Trump has been formulated, Asian countries like Singapore, India, Taiwan, Indonesia and others have been at a disadvantage. Exporting jobs from U.S and sending non U.S workers back to their home countries could trigger a serious negative impact. Moreover, China is likely to become the superpower in Asia, if the U.S President disengages America with Asia. It could take a toll on the political and economic stability. According to the revised estimation by the financial experts, the economy is likely to experience a slow growth in the current quarter.