Strengths and Weaknesses of the Singaporean Economy and its Preparedness to Deal with Macroeconomic Shocks

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Strengths and Weaknesses of the Singaporean Economy and its Preparedness to Deal with Macroeconomic Shocks

Introduction

Since its independence in 1965, Singapore has changed significantly in terms of its growth and the average development of its economy per year (Koh, 2006). Innovation and technological progress play an important role in the overall progress of the nation, and especially in determining how well it performs in its economy. As the nation moves closer to the middle-income earning level (Boman, 2020), it is important to conduct studies that will bridge the gap between what is known now regarding performances, versus the expectations and how to get there. Using economic models and macroeconomic objectives, the current position of the nation can be better analyzed for better economic outcomes in the future. In this report, the aim is to discuss the strengths and weaknesses of the economy of the country while measuring its overall preparedness to deal with emergent macroeconomic shocks. The paper will also outline the current efforts that have been made to ensure that the nation is moving positively forward. By studying the strengths and weaknesses of the Singaporean economy, the report will be able to make recommendations that are applicable in the future or presently to help steer the country in the right direction. Additionally, a review of the ability of the nation to deal with emergent macroeconomic shocks will predict how well the economy is able to withstand any variations from what is expected. In the recent past, issues such as the 2008/2009 global financial meltdown shook the nation’s economy, leading to serious economic consequences felt to date. Therefore, this report speculates that Singapore is performing well in terms of the strengths and weaknesses of the economy and that it is well prepared to deal with any macroeconomic shocks.

References

Boman, B. (2020). What makes Estonia and Singapore so good?. Globalisation, Societies and

Education, 18(2), 181-193.

Koh, W. T. (2006). Singapore’s transition to innovation‐based economic growth: infrastructure,

institutions and government’s role. R&D Management, 36(2), 143-160.