Introduction

Singapore is known to be a high income economy with a huge gross national income.  Singapore is also known to provide one of the world’s most business friendly regulatory environment mostly for businessmen. It is also known to be ranked among the world`s most competitive economies. This particular country is also known to develop from a low income country to a high income country (Chiu, 2018). Singapore have also known to reach full employment and the manufacturing and service sector of Singapore have been the two pillars of the high value added economy of Singapore. It is also known as the world’s most prosperous country where it has strong international links with the international countries. 

Singapore in the most modern city of the Southeast Asia. The Singaporean economy is a highly developed free market economy.  The government linked companies in Singapore known to play an important role in the economy. With the help of monetary policy, the government is known to maintain the price stability with the help of monetary policy.  The government is then known to increase the interest rate and control the price which will therefore control inflation.  policy, the government is known to maintain the price stability with the help of monetary policy (Wurfel & Burton, 2016).  The government is then known to increase the interest rate and control the price which will therefore control inflation.  The government will also create adverse situation in the business which will be increasing the propensity to save, help in performing open market operations.

Production output performance analysis

Year	Real GDP	Real GDP growth rate ( % )	Real GDP per capita
2005	170716905023.84	7.489157	61973.69
2006	185842757609.09	8.860196	65386.14
2007	202775870920.43	9.111527	68432.69
2008	206400733406.67	1.78762	66046.15
2009	205155335533.55	-0.60339	63697.29
2010	236421782178.22	15.24038	72115.84
2011	251436156949.03	6.350673	75113.2
2012	261703043637.70	4.083298	76285.57
2013	275078914558.12	5.111087	78896.61
2014	285762669600.29	3.883887	80903.53

Analysis of the table

The table above shows that values of real GDP, real GDP growth rate and real GDP per capita. The real gross domestic product in case of Singapore known to have increased at an increasing rate from 2005 to 2014.  The highest rate of the gross domestic product had been in the year 2014 while the leas was in 2005. The gross domestic product kept on increasing from 2005. The rate of gross domestic product have only decreased in the year 2009 where the growth rate declined by 0.6 percent.  For this reason, the real GDP per capita in the year have decreased in 2009 from 66046 to 63697. The manufacturing sector of Singapore is known to contribute a huge rate of the gross domestic product of the country.  The steady growth rate also states that it will be continuing to expand in the recent years.  The huge growth of the gross domestic product of Singapore is known to flourish as a result of huge amount of foreign labour.

GDP measuring the performance of the economy

The real gross domestic product is known to be the macroeconomic measure of the economic output which is known to be adjusted for the price change.  Therefore, the real domestic product is known to be the much better index in order to express the output of an economy. The real gross domestic product takes into account the value of commodities which are known to fluctuate in monetary terms (Deng & Gyourko, 2017). As a result of this, the real gross domestic product is known to provide a better view of the total national output of the country which will be decreasing the distortions. The real gross domestic per capita measures the output of the country in the economy which is known to be divided by the population that is being adjusted for inflation.  It have been found out that the per capital gross domestic product is known to be better indicator of the change in the living standards of nations. It is also known to serve the informal measure of the prosperity of nation.

Government measures to achieve production output performance

The government of Singapore is known to increase the productivity of the country. it has been found out that the productivity growth of Singapore has slowed down a lot. the government can lead to increase in the productivity of the country by finding enough amount in research and development. It is also advisable for the government to fund for better skills to the workforce and is also known to create huge competition among them.

Labour market analysis

Year	Unemployment rates
2005	5.59
2006	4.48
2007	3.9
2008	3.96
2009	5.86
2010	4.12
2011	3.89
2012	3.72
2013	3.86
2014	3.74

Analysis of the table

The above table shows the rate of unemployment in Singapore from 2004 to 2015.  From the above table it can be said that the year 2006 have been experiencing the maximum rate of unemployment which was 5.86 percent.  However, the unemployment rate kept on decreasing after sometime. The year 2012, have experienced the minimum rate of unemployment in that particular decade. From the year 2011, the unemployment rate kept on decreasing and were between 3 to 4 percent. The graph also shows that unemployment rate also did not fluctuate throughout these 10 years and were between 3 to 6 percent.

Different types of unemployment

Unemployment mostly takes place when the workers who are searching jobs are not being able to find work.  The rate of unemployment is known to measure the health of the economy. Unemployment can be either voluntary and involuntary in nature. The four types of unemployment are the frictional unemployment, structural unemployment and seasonal unemployment (Kostakis,  Lolos & Sardianou, 2017). The structural unemployment takes place when there is a mismatch between the skills which are needed and the skills which the workers possess. On the other hand, frictional unemployment results when the workers are known to leave their jobs in the search of new one.  The seasonal unemployment takes place when there is regular changes in the seasons. Lastly, when there is a presence of contraction phase in the business cycle, it leads to cyclical unemployment.

Unemployment in Singapore

The three most common type of unemployment that takes place in Singapore are the structural unemployment, cyclical and frictional unemployment.  As Singapore have a large external sector which leads to the demand deficient unemployment.  There is also a huge amount of restructuring in Singapore as a result of globalization. As a result of globalization there is a result of structural unemployment in Singapore.  There is also a presence of frictional unemployment since people find hard for finding new jobs in order to look for suitable jobs.

Government measures for reducing unemployment

In order to reduce unemployment., the government can make the use of various policies for achieving the full employment. With the help of fiscal policy, the government can achieve full unemployment in the economy and can also reduce the inequality measure in the economy.  One of the main objective of the fiscal policy is reducing unemployment in the economy. Fiscal policy is known to decrease unemployment by increasing aggregate demand in the economy along with the increase in the economic growth.

Price level analysis

Year	Inflation rates
2005	0.425106
2006	0.963047
2007	2.104926
2008	6.627997
2009	0.596873
2010	2.823277
2011	5.24791
2012	4.57596
2013	2.358601
2014	1.024983

Analysis of the table

The above table shows the rate of inflation for Singapore. The graph shows that in the year 2008, the inflation rate had been the highest which was 6 percent. The rate had declined sharply, after that to less than 1 percent. The rate of inflation had been very low in both 2005 and 2006.  The inflation rate had been highest in 2008.  On the other hand, the inflation rate had been the least in the year 2005.  However, in the year 2014, the rate if inflation had been very less. In the year 2009, the rate of inflation had been very high which resulted from the hike in CGST that had been imposed by the government.

Inflation and its types

Inflation is termed as the rise in the price level of the goods and services in an economy over a certain period of time.  inflation is known to be the quantitative measure of the monetary rate where the price level of commodities rises over a period of time.  when price will be rising, it will be affecting the cost of living for the common public. Inflation can be either cost push or demand pull. The cost push inflation in Singapore results due to rise in the labour cost which is known to be quite important in the labour intensive industry.  Demand pull inflation results when inflation is known to rise as the gross domestic product rises. Another reason of the demand-pull inflation takes place as a result of over expansion of the money supply.

Government measures to control inflation

With the help of monetary policy, the government is known to maintain the price stability with the help of monetary policy.  The government is then known to increase the interest rate and control the price which will therefore control inflation.  The government will also create adverse situation in the business which will be increasing the propensity to save, help in performing open market operations (Goh, 2017).In order to control the inflation in the economy, the government therefore follows the monetary policy.  The government therefore controls inflation through the contractionary policy. One of the major goal of the contractionary monetary policy is reducing the money supply within an economy by decreasing the bond prices and rising interest rate.

Conclusion

The Singaporean economy is a highly developed free market economy. The year 2012, have experienced the minimum rate of unemployment in that particular decade. From the year 2011, the unemployment rate kept on decreasing and were between 3 to 4 percent. The rate of inflation had been very low in both 2005 and 2006.  The inflation rate had been highest in 2008.  On the other hand, the inflation rate had been the least in the year 2005.  However, in the year 2014, the rate if inflation had been very less. In the year 2009, the rate of inflation had been very high which resulted from the hike in CGST that had been imposed by the government. The gross domestic product kept on increasing from 2005. The rate of gross domestic product has only decreased in the year 2009 where the growth rate declined by 0.6 percent.  For this reason, the real GDP per capita in the year have decreased in 2009.

The manufacturing sector of Singapore is known to contribute a huge rate of the gross domestic product of the country.  This country is also a highly developed and successful free market economy which is known to enjoy an open and corruption free environment with stable prices. As a result of the global financial crisis, the economy has been known to contracted a little in the year 2009.  The government is known to restructure the Singaporean economy by weaning its dependence on the foreign labour.  The growth of the economy however, went down a little in the previous years.

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