# data[].attributes.headline
Applicable Concepts For The Selected Articles

# data[].attributes.subject
Applicable Concepts For The Selected Articles

# data[].attributes.body
Concept 1: The Product of a Nation - Gross Domestic Product (GDP)
Concept 2: Business Cycle & Unemployment
Concept 3: Inflation

# data[].attributes.headline
                                    Preliminary Analysis For Article 1

# data[].attributes.subject
                                    Preliminary Analysis For Article 1

# data[].attributes.body
Singapore's GDP increased by 0.7% in the first quarter of this year as compared to the previous quarter. The manufacturing sector is the sector that has been doing best in the economy and also helped to boost Singapore’s economy in the first quarter of 2018. The growth in this sector will eventually decrease as global economic conditions normalize.

There is a slight decrease in global demand for electronics and this will affect Singapore's manufacturing sector by slowing down their expansion which will in turn affect Singapore's economy as well.

# data[].attributes.body
Article 1 Concept - Gross Domestic Product

# data[].attributes.attachment_link.readable_text
(Updated: )

Share this content

Share on Facebook

Share on Twitter

Share via E-Mail

SINGAPORE: A strong showing by the manufacturing sector again boosted Singapore's economy in the first quarter of this year, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Friday (Apr 13).

Going forward, the Singapore economy should continue to expand at a steady pace, although risks remain from an escalation of the trade dispute between the United States and China, which could have significant consequences for global trade, the Monetary Authority of Singapore said in a separate statement announcing a tightening of monetary policy.

Gross domestic product grew by 4.3 per cent year-on-year in the January to March period - up from 3.6 per cent in the previous quarter, MTI said in a press release.

On a quarter-on-quarter seasonally adjusted annualised basis, gross domestic product grew by 1.4 per cent, easing from the 2.1 per cent growth in the fourth quarter of last year.

The manufacturing sector remained the brightest spot in the economy with an expansion of 10.1 per cent on a year-on-year basis, a surge from the 4.8 per cent growth in the previous quarter.

"The manufacturing sector remains in the driving seat. However, growth in the manufacturing sector will likely moderate as global economic conditions normalise," said DBS senior economist Irvin Seah.

"Global demand for electronics is showing some signs of lethargy. Growth in global electronics shipment is flattening out while billing growth is moderating, essentially pointing to slower pace of expansion for the Singapore manufacturing sector going forward," he added.

On a quarter-on-quarter basis, growth in the sector came in at 23.3 per cent, a sharp turnaround from the 14.8 per cent contraction in the fourth quarter.

Services, which account for two-thirds of the economy, expanded by 3.8 per cent year-on-year - up from 3.5 per cent in the previous quarter - on the back of growth in the finance and insurance as well as wholesale and retail trade sectors.

The construction sector contracted by 4.4 per cent, extending the 5 per cent decline in the previous quarter. The weak performance was due to a fall in both private-sector and public-sector construction activities, MTI said.

Analysts said that although the construction sector remained in contraction, the pace of decline is easing and the sector could begin seeing brighter days soon.

"The recent en bloc fever and broad-based pick-up in the residential property segment, a key drag for the construction sector in the past, could hint of better days ahead for the sector," said DBS' Mr Seah.

The advance estimates take into account data in the first two months of the quarter. MTI will release the GDP figures for the first quarter in its Economic Survey of Singapore next month.

# data[].attributes.attachment_link.title
Singapore economy clocks 4.3% growth in Q1

# data[].attributes.attachment_link.description
SINGAPORE: A strong showing by the manufacturing sector again boosted Singapore's economy in the first quarter of this year, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Friday (Apr 13).

# data[].attributes.headline
                                   Preliminary Analysis For Article 2

# data[].attributes.subject
                                   Preliminary Analysis For Article 2

# data[].attributes.body
Singapore's unemployment rate decreased by a small margin of 0.1% compared to last year. Retrenchments also decreased. There is a few sectors in Singapore that witness an increase in employment rate. Job opportunities will continue to be available in most sectors but for sectors such as construction and marine shipyard, it'll remain cautious with their hiring.

# data[].attributes.body
Article 2 Concept - Business Cycle & Unemployment

# data[].attributes.attachment_link.readable_text
SINGAPORE: Singapore's unemployment rate in the first quarter was 2 per cent, down from 2.1 per cent in December last year, the Ministry of Manpower (MOM) said on Friday (Apr 27). Retrenchments also fell to 2,100 - the lowest in nearly seven years.

The unemployment rate for residents fell from 3 per cent to 2.8 per cent, while it remained unchanged at 3 per cent for Singapore citizens, according to an advance release of the first-quarter labour market report.

Total employment (excluding foreign domestic workers) dropped by 2,100 after a seasonal increase in the previous quarter, largely due to a decrease in work permit holders in the construction and marine shipyard sectors.

"However, the decline was smaller than the same period a year ago, as the contraction in both sectors moderated," said MOM.

Sectors in the services industry such as financial and insurance, information and communications, and transportation and storage saw an increase in employment.

According to the preliminary data, there were 2,100 retrenchments in the first quarter of 2018, down from 3,680 in the previous quarter and 4,000 in the same period last year.

This figure was the lowest since the third quarter of 2011, when the number of retrenchments was recorded as 1,960.

Retrenchments fell in the manufacturing, construction and services sectors.

MOM said that the labour market improved slightly "supported by the sustained expansion in economic activity".

Job opportunities continue to be available in the manufacturing and services sector, particularly in infocommunications and media, financial and insurance, healthcare, professional services, logistics and wholesale trade, it said.

Hiring is expected to remain cautious in sectors such as construction and marine shipyard, it added.

"While unemployment rates have declined from a year ago, further improvement will be harder to achieve. Addressing potential job-skills mismatches remains critical, as the economy restructures and the profile of the resident labour force evolves," the ministry said.

In a Facebook post on Friday, NTUC assistant secretary-general Patrick Tay said he was glad to see retrenchments fall significantly.

However, he added: "Although this may suggest an improved economic outlook with fewer firms needing to lay off workers, we have to be mindful that there may still be pockets of layoffs in some firms and sectors due to technological disruption and business restructuring as the economy transforms."

# data[].attributes.attachment_link.title
Retrenchments fall to near 7-year low, unemployment rate declines

# data[].attributes.attachment_link.description
SINGAPORE: Singapore's unemployment rate in the first quarter was 2 per cent, down from 2.1 per cent in December last year, the Ministry of Manpower (MOM) said on Friday (Apr 27). Retrenchments also fell to 2,100 - the lowest in nearly seven years.

# data[].attributes.headline
                                               Prelim Analysis For Article 3

# data[].attributes.subject
                                               Prelim Analysis For Article 3

# data[].attributes.body
In the month of March, the Inflation Level was slightly stagnant. The stagnant level would mean that the prices of goods and services were not increased generally. This resulted in a slow movement in the different sectors Inflation Rate. For example, in the Services Sector, the inflation rate was 1.4% in March and 1.9% in the February. From the cause of the slow inflation rate, the solutions would be efficiently developed overtime. For instance implementing certain monetary policies to assist this issue of inflation. Hence, the question is, how is Singapore as a growing nation and a trading hub ensure that the economy is doing well and have a strong and steady inflation rate?

# data[].attributes.body
Article 3 Concept - Inflation

# data[].attributes.attachment_link.readable_text
SINGAPORE - Singapore's inflation remained muted in March, as the cost of food and services rose more slowly compared with the preceding month and COE prices dropped.

The consumer price index - the main measure of inflation - edged up 0.2 per cent in March compared with the same month last year, according to Department of Statistics data released on Monday (April 23).

This was below February's 0.5 per cent rise and also below economist estimates of a 0.5 per cent increase.

This came as services inflation slowed to 1.4 per cent in March from 1.9 per cent in the previous month, mainly reflecting smaller increases in air fares and holiday expenses a year earlier.

The cost of private road transport also fell by 0.6 per cent in March, reversing the 0.6 per cent increase in February, due to lower car prices following a decline in certificate of entitlement (COE) premiums.

Food inflation dipped to 1.4 per cent last month from 1.5 per cent in February, due to a smaller increase in the prices of non-cooked food items and prepared meals.

Core inflation - which strips out accommodation and private road transport costs to better gauge everyday expenses - eased to 1.5 per cent in March from 1.7 per cent in February, reflecting lower services inflation.

The brighter global economic outlook could push up imported inflation in the coming months, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint statement. For instance, global food commodity prices are projected to rise slightly.

Still, despite the "sporadic spikes" in global oil prices earlier in the year, they should ease in the quarters ahead as supply remains responsive.

Faster wage growth and strengthening domestic demand could also push up price levels across the economy in the months ahead, MAS and MTI noted.

"However, the extent of consumer price increases will remain moderate, as retail rents stay relatively subdued and firms' pricing power may be constrained by market competition," they said.

Core inflation is expected to rise gradually over the year to come in at the upper half of the central bank's 1 to 2 per cent forecast range.

Similarly, overall headline inflation is projected to be in the upper half of the zero to 1 per cent forecast range this year.

Economists noted that the stronger inflation outlook is in line with the central bank's decision to return the Singdollar to a "modest and gradual appreciation path" in April after two years in a neutral stance.

The move lets the dollar gradually strengthen against a basket of currencies of Singapore's major trading partners.

The central bank uses the exchange rate as its main monetary policy tool to strike a balance between inflation from overseas and economic growth.

A stronger currency - which corresponds to tighter monetary policy - counters inflation by making imports cheaper in Singapore dollar terms.

The MAS said the move stemmed from its view that the economy is "likely to remain on its steady expansion path in 2018", while upward pressure on core inflation is expected to persist.

ANZ economists Eugenia Fabon Victorino and Khoon Goh said April's inflation numbers "also look likely to be on the soft side".

This means a much stronger recovery in employment and wages is required to push inflation towards the upper end of the central bank's forecast range, and also for the MAS tighten policy again at its next meeting in October.

"In this regard, we will be paying close attention to the first quarter labour market data to be released on April 27," they added.

# data[].attributes.attachment_link.title
Singapore inflation eases in March with consumer prices up 0.2% amid lower COE prices

# data[].attributes.attachment_link.description
SINGAPORE - Singapore's inflation remained muted in March, as the cost of food and services rose more slowly compared with the preceding month and COE prices dropped. The consumer price index - the main measure of inflation - edged up 0.2 per cent in March compared with the same month last year, according to Department of Statistics data released on Monday (April 23).

# data[].attributes.headline
                      Definition of Concept Terms

# data[].attributes.subject
                      Definition of Concept Terms

# data[].attributes.body
Gross Domestic Product
Gross Domestic Product (GDP) is the measure of a nation's economic performance as well as the health of its economy as a whole.

Business Cycle
Business Cycle is the alternating periods of economic growth and economic decline which can be measured by changes in the Real GDP. In addition, it consists of the four main stages which includes peak, recession, trough and recovery.

Inflation
Inflation is the sustained and continuous increase in the general/average level of prices of the goods and services in the country's economy.

# data[].attributes.headline
                      Decrease In Global Demand In The Electronics Sector

# data[].attributes.subject
                      Decrease In Global Demand In The Electronics Sector

# data[].attributes.body
The possible reason why there is a decrease in global demand in the electronics sector would probably be due to each country's production capability and capacity. Currently, there is definitely various Factors of Production in each country and hence, they would be able to use these resources to produce their own electronic products as well as services. If the country is able to produce these products and services at a certain level where consumers are satisfied with it, they would not necessarily have to import these items which decreases the demand in the particular sector. In addition, if countries are able to increase production with an effective cost, there would be more reason for the  decreased demand for a certain product.

# data[].attributes.headline
                                                           Effect On Singapore

# data[].attributes.subject
                                                           Effect On Singapore

# data[].attributes.body
The decrease in demand in any sector definitely affects a country. Firstly in Singapore itself, it has an impact on the Net Exports. The decrease in demand would mean that other countries such as Malaysia, China and Indonesia would import items from Singapore at a slower pace. In addition, Singaporeans may also demand less which would cause a slower pace for the import of electronic items into Singapore itself. If both exports as well as imports start to decrease simultaneously, the Net Export component in calculating GDP would also see a decline. In order to have a good and stable GDP, all the four key components would have to be of a certain value and hence, by having a low Net Export value, it can possibly affect the GDP value negatively. As one of the more competitive country conducting international trade, it is key to be able to balance exports and imports in order to stabilize and solve the issue of having either too many exports or imports both externally and internally.