Wednesday, January 4, 2012

Left unspoken, Singapore last year grew less than inflation

In the 2012 New Year's message, Singapore has announced that they grew 4.8% in 2011. However what was left unspoken is that the real growth is negative, based on my advanced estimates of 5.2% inflation rate for 2011 which I have written in my post here.

The fact that Singapore is dependent on the global economy growth is no secret. However, what puzzles me is that since Singapore is keen to promote innovation, why is Singapore not trying to excite our own domestic economy and promoting more spending within, than to keep relying on external economies to determine our economic growth? Based on IMF, Singapore has a PPP of about $56,000 USD for 2010.

Judging from what I overheard during my recent cruise,  it would seem that one of the major reasons of not spending is because we're never on holiday. Instead of families discussing what they will do on the cruise ship, I overheard people talking about the power plugs within the cabin, and "boasting" that they brought their laptops on-board to do work.

What's the use of holidaying if you're bringing your work along? Most importantly, are you spending your time during your holidays on your laptop at work, or are you spending your money on the economy?


Anonymous said...

"In the 2012 New Year's message, Singapore has announced that they grew 4.8% in 2011."

If they tell you the truth that there is negative growth, will our MIWs, Minister DeMentor, PM, etc even receive their bonus ? They can only do by manipulating statistic and not telling you how it is done.

As LKY once mentions "You can't handle the truth !" Well, seem like ISA is the truth

Sgcynic said...

Lim Hng Kiang say we should only take into account core inflation rate, which stands at 2.4%, especially those who already bought their home and car. So is our CPF Minimum Sum raised by taking into inflation rate or core inflation rate, given that most would have bought their homes? Sigh, just look at the yearly "adjustments"? Two legs good, four legs better.

Anonymous said...

You are wrong. The growth rate is a real rate.

kimseng said...

the 4.8% is real growth which means it already takes into account the inflation rate. maybe you really should take your laptop on holiday, gives you more time to do your homework.

chantc said...

Can you please point me to the news that says that its real growth? I've looked through the press releases and the MTI press release. Nowhere does it say that its real growth.

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