Role of Macro Economy in Country
Discuss about the Macroeconomic Stability and Financial Stability.
The monetary aspects and financial policies are considered as the strengthening pillar for the development and growth of the country. The stable procedure followed by the country will be helpful in generating the suitable options for the growth in all the respects. To manage the economy of the country, two factors are taken into consideration that are known as the macro-economic factors and micro-economic factor. The macro economic factors are considered in the wider discussion and the country which is opting for the discussion of this report is Singapore.
The economy of Singapore has changed rapidly since year 1965. There are various ups and downs that are observed by the economy in different forms. The reason for the change in the economy is due to the high involvement of the country in chemicals, petroleum products, biomedical and electronics. It is considered that different domains are always measured as the key source for the growth and development. The report shown below is mainly helpful in showing the contribution of macroeconomics in the development and success of the country i.e. Singapore. To discuss this topic, the major sections which are covered in this report are identified as the role of macro economy in the country, economic statistics and policies, support and role of government, recommendations and at last it ends with a conclusion.
The macroeconomic plays prominent role in the economic stability and persistence outlook of the country. The growth rate of the country will increase by the help of this which will also help in providing the suitable exposure widely. The economy will also get strengthened on the international and global level too. It is clearly defined that the macro economy of the country is loaded with the changes which can help in managing unemployment, growth aspects and also reduces the GDP. The macroeconomic aspects assists in contributing and coordinating in a suitable way. The proper growth aspects related to the macro economy are shown below with different perspectives and years of development (Team, 2016).
In the year 2010, the wide range of changes is observed in the economic structure of Singapore. Year 2009 is considered as the recession year, which was not at all helpful in providing the suitable assistance, but in the year 2010, the macro economy provides different opportunities in performing suitable improvement in the country (Econs Team, 2014).
Economic Statistics and Policies
In the year 2011, the macroeconomic aspects of the country established their appropriate identity in the local as well as the international market. The inflation rose to 2.8% and the improvement in the global food and oil policies helps in the growth of global market. By the help of this, the trends of trade and market position of the labor can easily be observed on the primary level. The generation of the profit with the help of the trade is also improved in a suitable equilibrium.
In the year 2012 and 2013, the macroeconomic aspects help in managing the most promising aspects related to the GDP and inflation in the country. Though, the other balancing of account sheet and the weak banking system of the Singapore appears as the hindrance in the growth of the company. But, still some aspects of improvement are continuously observed on the large scale. The macro economy also helps in the housing schemes and asset market inflation in the right direction. The stabilization and financial aspects gets strengthened during this year. The controlling and monitoring aspects also get improved during this year (Morgan, 2011).
Finally, the year 2014-2016 helps in framing the suitable technological image of the macro economy in the existing market. The global finance structure and formation of the advanced and repaired bank sheet can also be formed with the help of the macroeconomic structure. This will definitely help in changing the current form of the economic aspects in the country.
The wide range of statistics and policies are observed in the Singapore which are helpful in improving the existing condition of the economy in the country. The statistics and policies are defined for the long term and also expand to the economic growth and development of the country. According to the recent statistical analysis of the country, the GDP of the country is expanding with the rapid rate and it becomes just doubled eventually. From the year 2010 to 2016, the GDP of the country rises from approx $ 163 to $ 304. By this improvement, the other factors related to it are also getting influenced. The real GDP also increases with the compounded rate of about 12% and the increment in the employment also increased by 3%. This will also reduce the impact of unemployment and nearly 5% of the unemployment rate reduces with the major improvement in the aspects related to the macro economy in a complete sense.
Support and Role of Government
The economic reports and aspects revealed that the statistical improvement is observed in the fiscal policies too. Rather than following the cyclic approach in the fiscal policies, it is easier to maintain the long term economic growth. The consistencies in the fiscal aspects and the maintenance of suitable budget will be helpful in providing the suitable improvement in the domestic currency and foreign reserves of the country. The contribution and the participation of different domain in the macro economy of Singapore is defined below in the form of a pie chart. Apart from this, the statistical growth is also observed in a simultaneous manner. The growth perspectives will become more elaborate and well-framed with the strategic contribution of the macro economy.
Other than the statistical views and analysis, the policies and procedures are also managed by the organizations in Singapore. There is a wide range of private and semi-government organizations that come up with the suitable policies. These policies are mainly defined for the improvement and modification of the existing structure related to the economy of Singapore. The list of policies with their specific support is defined below: -
One of the major policy is propounded by the MAS (Monetary Authority of Singapore) in which the higher support is diverted towards the liberalization of the banking and marketing domain. With the help of this policy, the mode of foreign entry will increase and the most suitable assistance will also be propounded for the new business policies. Apart from this, the MAS also emphasize on the consultative approach, in which the decisions are taken by the appropriate strategic planning and the employees also contribute in this revolutionary change (Singapore, 2016).
According to one of the evidence, it is identified that the strategic approach towards the managerial aspects will be helpful in improving the current financial status of the country. The suitable coordination of the employees’ policies will be helpful in defining various initiatives on a wide scale. These initiatives contribute to the political and macroeconomic stability and will assist in bringing a dynamic change very soon.
Similar to the MAS, MDD (Monetray and Domestic Market Segment Department) is also identified as the organization which helps in forming suitable aspects related to the trade and economic growth. The basic monetary policy decision and the monetary perspectives are identified with the help of MDD (Dudley, 2015).
The supply side policies are also considered widely. These policies are identified for the suitable accumulation and coordination of the resources. It may also help in the technical advancements and combining of capital stock. The continuous rise in the labor productivity is also observed with the help of this policy. These tools will be helpful in improving the macroeconomic condition of the Singapore.
All these defined policies are helpful in managing the major aspects related to the Singapore in every possible mode. There are also some changes which are continuously observed in the suitable policies in the instant manner. These changes are considered in making the positive changes in the proper direction, which may also manage the flow of work specifically.
The government is supporting Singapore in a more specific and advanced manner. There are various advanced and innovative techniques introduced for making proper strategy which may further help in defining the success of the country in the financial and monetary aspects. Being the most supportive backbone for the macroeconomic aspect, the government is supporting the development ventures related to the organizations. Some of the government support aspects are defined below with the proper description: -
The framing of legislative framework is the most remarkable achievement of the Singapore government. This legislative framework will be helpful in providing the suitable rules and policies in the correct direction. For improving the exchange policies of export and import in the business, it is essential to identify the suitable rules and procedures (The Heritage Foundation, 2016).
The allocation of a stable environment for the business is also considered as the primary responsibility of the government. The government is able to define proper perspectives for the monetary policies. By the help of this, the monetary policies are geared in the suitable manner and long term competitiveness is also defined for the improvement of the current economy.
The suitable investment in the infrastructure and development of manpower is also measured with the help of the government. With the contribution of government, the growth rate increases with an alarming speed that will also help in the productivity as well (Ministry of Trade and Industry, 2009).
The facilitation of business is also identified as the contribution of the government. The government is able to solve the issues related to the macro-economy with the help of the economic development board and the international enterprise Singapore (Industry, 2011).
These governmental aspects are helpful in improving the business perspectives and the financial aspects on the wide level.
By observing the scenario defined above, it is clear to generate the suitable assumptions related to the macro economy easily. But, due to the rapid changes observed in the macro economy, it is required to apply some specific aspects by which the flow of process can be maintained in the correct direction and by this, the target for the financial aspects can easily be improved. Some of the major recommendations are defined below in the specific points: -
The macro-economic aspects create a wide contribution in the existing economy of Singapore. So, it is essential to plan a suitable strategy in the correct direction. With this, the proper flow and execution can be maintained easily. It is also recommended that the implications for the suitable fiscal growth will be essential to be found out in the correct direction (Australia's Future tax System, 2016). It is also recommended that the suitable measurement of the fiscal aspects can be predetermined for the suitable growth perspectives.
The recommendation is also well-defined for the government and policies made by them. For managing suitable policies, the accurate framing and suitable amendments are required in the appropriate track. Other than this, the assumptions and estimation for the suitable funds are essential to be identified. By this, the suitable contribution to the macro-economy can be done in the right way.
By considering different studies above and identifying the macro economy, it is identified that macro economy is the most important contributor to the development and success of any company. It is essential to highlight the major aspects of macro economy and make proper use of it. To make the success of the country possible, the acceptance of the rapid change should be high. If the existing economic structure of the Singapore will be flexible, then it can become likely to improve the existing market trends and policies.
Australia's Future tax System, 2016. Macroeconomic and fiscal impacts. In: Final Report: Taxreview, p. Chapter 11, Available at: https://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/papers/Final_Report_Part_1/chapter_11.htm
Dudley, W., 2015. "Macroeconomic Stability and Financial Stability: Uncomfortable Bedfellows?". , Available at: https://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2015/Macroeconomic-Stability-and-Financial-Stability.aspx
Econs Team, 2014. Summary of Singapore’s macro-economic outlook 2007 – 2014. Available at: https://www.econs.com.sg/essay-writing/singapores-macro-economic-outlook-summary-2007-2014/
Industry, M. o. T. a., 2011. Economic Survey of Singapore: MTI, Available at: https://www.mti.gov.sg/ResearchRoom/SiteAssets/Pages/Economic-Survey-of-Singapore-2011/Ch5_AES2011.pdf
Ministry of Trade and Industry, 2009. Economic Roles of Government. 31 March.
Monetary Authority of Singapore , 2016. The Singapore Economy. The SGS Market, Available at: https://www.sgs.gov.sg/The-SGS-Market/The-Singapore-Economy.aspx
Morgan, P., 2011. The Role of Macroeconomic Policy in Rebalancing Growth, Available at: https://www.adb.org/sites/default/files/publication/156121/adbi-wp266.pdf
Team, F. E., 2016. Singapore Economic Outlook. Economic forecasts from the world's leading economists.
Teo, A., 2013. Globalisation index ranks Singapore second, Available at: https://www.econs.com.sg/essay-writing/globalisation-impact-singapore/
The Heritage Foundation, 2016. Index of economic freedom: Singapore. The wall street journal.
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