Why the Singapore Economy Really Isn’t That Bad
Whenever we appraise economic growth, there is always a tendency to take a short rather than a longer-term perspective. Such a focus not only encourages us to see things in a less favourable light, but it also undervalues the importance of historical trends and any incremental growth that the global economy has experienced over the course of the last 30 years or more.
A quick glance at the global economy reveals that the levels of growth sustained since the Great Recession began in 2008 has been immensely disappointing by most metrics. Any prosperity that has been evident in either developed or emerging economies during this time has been sporadic, while uncertainty and geopolitical volatility has also caused significant fluctuating in the financial markets.
Despite this, PWT data on average, real-time inflation per capita GDP tells a slightly different narrative. This reveals that the global population was 80% richer financially in 2010 than it was in 1980, while also underlining the fact that gradual, long-term growth trends are all too easy to overlook. Interestingly, the average material well-being of society is three-times what it was in 1950, and this is an economic trend that should offer hope for future generations.
The Singapore Economy: Should We View it From an Alternative Perspective?
It should also alter our perspective on the modern day economy, particularly the ways in which we appraise specific markets, regions and asset classes in real-time. This is crucial when looking to forecast future growth trends and pre-empt the impact of specific market developments, as it encourages us to operate with a keen sense of determinism and recognise the robust nature of the global economy. It also reaffirms the cyclical nature of boom and bust and the fact that even a weak macro-economy can offer unique advantages to businesses, consumers …
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