VJC econs 2018 Promo QP and SAMS

2018 Promo QP 3 H2 ECONOMICS – PROMOTIONAL EXAM 2018 QP Section A: Case Study Question [30m] Economic developments in Singapore and China Extract 1: Breaking Singapore's record streak of negative inflation After a record 24 straight months of negative readings, consumer prices in Singapore have finally stopped falling. The latest reading, which was in line with analysts' expectations, officially put an end to Singapore's longest period of negative price growth. The rise in prices of consumer goods & services has been partly attributed to production inputs becoming more expensive in recent times. UOB economist Francis Ta n also described the non - negative reading in November as an "important milestone", which may indicate "some uplift in global demand". Source: Channel NewsAsia, 29 December 2016 Source: World Bank Extract 2: Higher expectations for Singapore’s 2017 growth Singapore’s economy this year is likely to clock its fastest growth rate in three years as global growth strengthens considerably, according to gross domestic product (GDP) growth data released by the city-state's Ministry of Trade and Industry (MTI) on Thursday. Notably, trade promotion agency International Enterprise (IE) Singapore on Thursday upgraded its non-oil domestic export (NODX) growth forecast for 2017 considerably. It was previously at 0 to 2 percent; now it's lifted to 4 to 6 percent. This br ighter external outlook results from an expected stronger pace of growth in the United States and key Southeast Asian economies. Source: The Business Times, 26 May 2017 0 2 4 6 8 10 2011 2012 2013 2014 2015 2016 2017 Chart 1: GDP growth at 2010 prices (annual % change) China Singapore

2018 Promo QP 4 Extract 3: China’s economic success China has lifted more people out of poverty than anywhere else in the world: its average income per person increased fivefold between 1990 and 2000, from $200 to $1,000. Between 2000 and 2010, average income per person also rose by the same rate, from $1,000 to $5,000, moving China into the ranks of middle-income countries. This incredible success in uplifting people from poverty was delivered by a protracted period of economic growth and a series of government transfers. The question now is whether the government can repeat this success and eradicate extreme poverty entirely: after all, up to one person in ten in the country remains poor. The current economic and social five-year plan aims to eliminate all poverty by 2020, and it seems likely that this target will be reiterated in the new five -year plan to be agreed by the Chinese Communist party’s central committee next year. Economic growth will of course also need to be the sustainable kind with lower carbon emissions – no small order for a country where air pollution kills an estimated 4,000 people a day. Source: The Guardian, 19 August 2015 Extract 4: Pollution crisis is choking the Chinese economy On a Tue