Singapore GDP Growth rates correlate with World GDP

Singapore economy is open and dependent on the world economy to drive growth.

How closely related are we with the global performance of economic growth? The following table shows Gross Domestic Product (GDP) annual growth rates of both Singapore and the World over 20-year time horizon since 1996. GDP growth rates are based on constant 2010 dollars.

Year S % Growth W % Growth Remarks
1996 7.5 3.34
1997 8.3 3.76
1998 -2.2 2.45 Asian Financial Crisis
1999 6.1 3.30
2000 8.9 4.33
2001 -1.0 1.97 Dot-com Bubble
2002 4.2 2.18
2003 4.4 2.90
2004 9.5 4.46
2005 7.5 3.82
2006 8.9 4.38
2007 9.1 4.31
2008 1.8 1.84
2009 -0.6 -1.68 Global Financial Crisis
2010 15.2 4.35
2011 6.2 3.13
2012 3.4 2.48
2013 4.4 2.40
2014 3.3 2.63
2015 2.0 2.47
Source: World Bank and Singapore DOS

S % Growth = Singapore GDP %
W% Growth = World GDP %

The graph below is a representation in chart form of the same data.

Singapore GDP vs World GDP

Singapore GDP vs World GDP

The thicker line is World GDP while the thinner line is Singapore GDP. The dips and spikes in GDP growth rates were in tandem.

Singapore’s forecast for 2016

Since 2012, the world was seeing slow growth of about 2.5%. Singapore is slowing also. 2015 GDP growth rate for Singapore was only 2.0%.

The latest forecast for Singapore GDP growth rate for 2016 is now at 1.0 to 2.0% (Source: MTI, 11 August 2016). This is no comfort for investors and workers alike. As long as the world economy does not improve, Singapore will suffer as well.

The World Bank forecasts global GDP to only grow at 2.4% this year, slower than 2015 actual result. 

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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One Response to Singapore GDP Growth rates correlate with World GDP

  1. The says:

    Singapore’s economic growth has a high beta. If it is so closely correlated to the world economy, why are we paying millions for the ministers?

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