Singapore is one of world's rapidly developing economies. Singapore economic policies have been greatly responsible for this nation's rapid economic progress. National government of Singapore expect an economic contraction in 2009. This has led Singapore's policy makers to introduce measures directed at reducing impact of a slowdown.
Economic growth predictions
Singapore's economic growth in 2008 was estimated to be around 2.5 percent in November, This was much lower than an earlier assessment of 3 percent and also lower than one-third of growth rate in 2007. Singapore economy growth is predicted to decline by another 1 percent in 2009.
SG economic policy
Singapore economic policies work towards reducing interest rates. Stimulus packages to ward off adverse effects of global financial crisis are also part of Singapore economic policy. Nation is slated to announce its new budget on January 22, 2008. Date of announcement of new budget has been brought forward owing to warning that Singapore economy may have to experience many years of slow growth.
Expansionary policies
Singapore's weakening economy has created an urgent requirement for its policy makers to introduce expansionary policies. Since external demand is one factor that Singapore's government cannot do much about, policy makers focus would be on boosting economy through domestic resources.
Focus area for Singapore's economy
Several areas of Singapore's economy need to be addressed by policy makers in future. This nation's economy is heavily dependent on export sector. But demand for electronic goods and pharmaceuticals has been going down, creating pressure on Singapore's export industry and hence, on its economy. Singapore economic policy, to be introduced in near future, will help local companies to get loans in a more secure manner.
Government spending is also unlikely to be reduced, as stated by Finance Minister of Singapore, Tharman Shanmugaratnam. Singapore's central bank said that it's unlikely to change its policies in wake of global financial crisis. Singapore's economic policies include a spending of about $390 million in training laid off workers.
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