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Unit 2 Ip

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Economic Growth Strategies for Hong Kong and Singapore

Christopher S. Veler

May 1, 2013

Macroeconomics 224

Economic Growth for Hong Kong and Singapore

Hong Kong and Singapore were both considered newly industrialized countries during the 1970’s and 1980’s. A newly industrialized country can be classified as a country that falls between a developing country and a first world country, economically. Both Hong Kong and Singapore were British colonies that once served the region with distinguished trading ports. Both countries also attracted talent world wide and capital that turned into international financial centers. Unfortunately, in recent years, both of these countries have seen their growth rates fall. In 2012, Hong Kong and Singapore saw a growth of 1.5% and 1.3%. In 2013, their growth improved, but they faced both increasing costs and weak growth among some major export markets, which attributed to their struggles in economic growth. Both of these countries are still growing and trying to find their place in the global economy today. One change they have made is that they have moved away from an economy based on agriculture and focused more on industry. The remaining portion of this paper will discuss strategies that these countries may want to consider implementing to help further encourage economic growth in their country.
One strategy that both Singapore and Hong Kong should implement to improve economic growth is to join organizations such as the Association of Southeast Asian Nations. By joining this association, both countries would benefit by being part of the world’s largest free trade group. Entering a large heterogeneous combination of trading would benefit both countries. One way that these countries would benefit is by receiving minimized or possibly even eliminated tariffs on specific goods between other members of the association....

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