Today is the last day of 2025.
2025 GDP grew at 4.8%, the best post covid.
Despite the fearmongering of economic collapse narrative during the 2025 election, Singapore emerged as a winner even with tariff, geopolitical tension between superpowers and countries. It is not rocket science that Singapore will always benefit economic shocks from overseas. Monies will always flow to Singapore during crisis.
No wonder all civil servants received solid bonuses.
Many Singkies believe in fearmongering will always be manipulated.
From GPT:
GDP is useful, but it can
seriously misrepresent how people are actually doing. Here are the main ways GDP figures can
mask the real situation, with intuition rather than jargon.
1. GDP measures activity, not well-being
GDP counts
economic transactions, not whether life is getting better.
- A traffic accident → hospital bills, car repairs → GDP goes up
- More stress, longer working hours, poorer health → not deducted
- Caregiving for elderly parents at home → zero GDP, even though it’s valuable

So GDP can rise while quality of life falls.
2. GDP ignores income distribution
GDP per capita is an
average, not what most people experience.
Example:
- GDP grows 4%
- Top 10% capture most of the gains
- Median worker’s real wages stagnate or fall
On paper: “economy is strong”
In reality:
most households feel poorer
This is especially visible when:
- Asset prices rise (stocks, property)
- Wages lag inflation
3. Inflation can distort “growth”
GDP is often reported in
real terms, but:
- Official inflation baskets may underweight essentials (housing, healthcare, education)
- People feel cost pressure long before statistics show it
So:
- “Real GDP is growing”
- Households feel squeezed because their personal inflation is higher
4. GDP counts debt-fuelled growth the same as sustainable growth
Borrowing boosts GDP
today, regardless of tomorrow’s cost.
Examples:
- Government deficit spending
- Consumer credit expansion
- Property bubbles
GDP rises now, but:
- Future tax burden increases
- Financial fragility builds
- Growth may reverse sharply later
GDP does
not warn you about this.
5. GDP ignores household balance sheets
Two countries can have the same GDP growth, but:
| Situation | GDP impact | Reality |
|---|
| Rising wages, low debt | + | Healthy |
| Flat wages, rising debt | + | Fragile |
GDP does not show:
- Household debt stress
- Savings adequacy
- Retirement readiness (a topic you’ve been thinking about)
6. Asset inflation inflates GDP without helping non-owners
When:
- Property prices surge
- Stock markets rise
GDP rises via:
- Construction
- Financial services
- Transaction fees
But if you don’t own assets:
- Housing becomes less affordable
- Wealth inequality widens
GDP celebrates this as “growth”.
7. GDP ignores job quality
GDP rises even if:
- Jobs become more insecure
- Gig work replaces stable employment
- Workers are underemployed or overqualified
You can have:
- Low unemployment
- High burnout and anxiety
GDP sees only
output, not
conditions.
8. GDP ignores unpaid but essential work
Examples:
- Elder care
- Childcare
- Community support
As societies age (relevant to Singapore), more value is created
outside markets, so GDP increasingly understates real effort and strain.
9. GDP ignores environmental and future costs
Pollution, depletion, climate damage:
- Increase GDP today
- Impose large future costs
GDP records the
benefit, not the
liability.
10. Why governments still rely on GDP
Because GDP is:
- Easy to measure
- Comparable across countries
- Useful for tax revenue and macro planning
But it was
never designed to measure human welfare.
Better indicators to look at alongside GDP
If you want a clearer picture of reality:
- Median real wage growth
- Household debt-to-income
- Savings rate
- Housing affordability
- Labour force underemployment
- Gini coefficient (inequality)
- Life satisfaction / health outcomes
Bottom line
GDP can rise while people feel poorer, more stressed, and less secure.
So when someone says:
“The economy is doing well”
A better question is: