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|
|1998||-2.2||2.45||Asian Financial Crisis|
|2009||-0.6||-1.68||Global Financial Crisis|
|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.
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.
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