Austerity Measures on Spending in Forefront again

Singapore’s Real Gross Domestic Products (GDP) grew below 3.0% in year 2008, 2009, 2012, 2014 and 2015.

For the past three years, GDP growth rates were 3.0%, 3.7% and 3.1% respectively. As for this year 2019, the Ministry of Trade & Industry (MTI) is planning to revise the GDP estimate downwards from 1.5% to 2.5% initially estimated.

Real GDP Growth Rates

Year %
2007 9.1
2008 1.8
2009 -0.6
2010 15.2
2011 6.1
2012 2.5
2013 3.9
2014 2.9
2015 2.9
2016 3.0
2017 3.7
2018 3.1

Source: DOS Singapore

2019 is on track to show a weak performance in the economy compared to 2018. It was in 2012 when we saw a weak economy after the Global Financial Crisis (2007-2009). It is discomforting even when the economy would not slip into recession for the whole year this year.

I am now back to austerity drive to cut back on unnecessary expenditures. Without a steady income stream and one that is affected by the economy, it is necessary to watch my spending. One good thing that happened this year was that I had given up my car. This is a great saving for me. I am also looking at other ways to cut on discretionary expenditure.

Copyright © 2019, 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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