As the global economic crisis is not something of past, Singapore economy grows at 14.7 %in 2010, much higher than the originally expected 8% or so. Looking back in the recent past, we would see that entrepot economy shrunk by 1.3%. One might call into the question how Singapore arrived at such an astonishing growth, given in a time of crisis.
Singapore is one of most trade-dependent economies. During the early time of crisis, many distinguished economists have questioning about Singapore economic health. However, the upshot turned out to be just the opposite. The city-state economic recession was just as bad as their European counterparts at the time. Now, she bounced back with strong robust growth. Some even labeled the growth as the “Return of Singapore Economic Miracle.”
The secret is to do with Singapore response to recent economic tsunami. Like most countries of the West, Singapore experienced severe economic hardship. Unlike most of European countries, US is an exception, Singapore decided not to shut down production line and not to lay off skilled workers, trying to keep economic circular in a stable condition. Singapore state is very rich and its people vice versa. According to Wikipedia, Singapore GDP valued at S$235.7 billion in 2009 and GDP per capita valued at S$503000. Considering the figures, it is not hard for both Singapore Government and People to withstand economic hardship for a short period of time.
After the crisis receding, there have been strong demands for goods and services from developed countries and they need to export, mainly high-tech products, from other countries (because their production lines are in disarray and need a certain time to get back on track). Coincidentally, Singaporean workers were on standby for production. So, companies, factories and other economic agencies start their respective work and enjoy a neck-breaking export speed. The report of Ministry of Trade and Industry of Singapore revealed that the growth of Singapore economy in 2010 heavily led by the surge of manufacturing sector, 38, 6 increase years on year basis, and by strong global demand of Semiconductor increasing 13,7 comparing to previous one.
However, Singapore economy is losing its momentum in 2011 as some countries in the West are away from recession. The City Prime Minister expects economy to grow around 4 or 5 percent this year. And that’s lesion from Singapore!!!