https://sg.finance.yahoo.com/news/singapore-economy-grows-much-stronger-011839959.html
Our economy grew 2.9% in the 2nd quarter year on year. Hooray!
Wait....How come we don't feel the good economic growth?
Well, let's look at the GDP composition.
GDP = G + I + C + Net Export (X - M)
G= Government spending
I = Investments (FDI)
C = Consumption
Net Ex = X - M, Export - Import
GIC will impact Singaporeans more directly than Net Ex. Net Ex is more like trading which will result in trade surplus or trade deficit for Singapore.
Since C is a negligible component of Singapore GDP as we are a small nation with a small population, we can only rely on GI and Net Ex for boosting our GDP.
However, our good GDP growth is derived primarily from Net Ex this time. Therefore, we don't feel much impact from the good GDP figure unless you are in the trading industry.
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2 comments:
https://sg.finance.yahoo.com/news/singapore-apos-economy-grows-faster-000000781.html
http://www.asiaone.com/singapore/over-half-singaporeans-willing-accept-pay-cut-or-demotion-stay-employed
Why is this article discussing pay cut or demotion when our economy is growing strongly?
It is pretty obvious that ordinary citizens don't feel the euphoria.
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