Singapore economic growth is dependent on Exports

Budget 2016 is an expansionary fiscal budget for Singapore. Total government expenditure for 2016 will be raised by 7.3% from 2015 to $73.4 billion. But this alone is not going to lift Singapore from slow economic growth this year.

The major components of Gross Domestic Product (GDP) include domestic consumptions, exports, government expenditure and fixed capital formation.

To give an idea of each component in contributing to GDP, I used the table below taken from Singapore DOS.

Expenditure On GDP At Current Market Prices in 2015
Types of Expenditure $Million Percentage
Private Consumption Expenditure 147,579.90 36.7%
Government Consumption Expenditure 41,851.40 10.4%
Gross Fixed Capital Formation 102,670.60 25.5%
Changes In Inventories 3,136 0.8%
Net Exports Of Goods And Services 108,152 26.9%
Statistical Discrepancy -932 -0.2%
Total Expenditure On GDP 402,457.90 100.00%

Government consumption expenditure is just 10.4% of total GDP in 2015. Net Exports of goods and services was 26.9%. Export is a major component. If exports were to decline in 2016, Singapore GDP will decline.

Oil export was about 24% of total merchandise exports, impact on oil export will also slow down Singapore economic growth.

To sustain good economic growth, export plays a significant part in Singapore. This is still a concern.

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