The Singapore Economy in 1987

As helplessly as the Singapore economy floundered in 1985 into its first major recession in two decades, which decimated its annual growth rates averaging 9.4 per cent between 1969 and 1979 to -1.8 per cent in 1985,1 it regained its momentum in 1987 with dis cipline and diligence. While 1985 will be remembered as year of gloom and 1986 as one of belt-tightening and policy reversals, 1987 was itself watershed, posting strong upturn. In 1988, however, more sober growth of 5-6 per cent is expected. The growth performance since 1984 is shown in Table 1 using 1985 as the base year.2 With growth rates of 7.0 and 7.9 per cent achieved in the first two quarters of 1987,3 an overall rate of 6-7 per cent was considered no problem.4 By the third quarter, hefty 9.4 per cent growth was attained, raising expectations of an overall growth to at least 8 per cent. True enough, higher-than-usual 8.6 per cent had been attained for 1987. For the longer term, sustainable rate of 4-6 per cent is considered a generous estimate by the Minister for Trade and Industry, Brigadier-General Lee Hsien Loong. This is because of domestic constraints in the size of the labour force and the maximum possible productivity growth as well as uncertain developments in countries like the United States. Brigadier-General Lee further stressed

Economics · Economy · Political science · Socioeconomic Development in Asia