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Young growth Nanning Singapore was caucused increase in sports, tourism and booming of manufacturing sector (Shannon, 2010). Also, the government lowered corporate taxes, subsidized wages, guaranteed bank loans and invested in the country’s infrastructure (Prestidigitation, 2012). As Philippines unmanning 2010, tintinnabulations election which spurred the consumer demand in the market (Philippines Economy Profile, 201 3) In Thailand, the 28% increase in their exports contributed a lot to the increase in their gap which accounts for 70% (Michigan State University, 2012).
In Malaysia, the increase in 201 0 was caused by the strong expansion f private consumption and capital spending (Zinnia, 2011 For Cambodia,it is driven by strong exports, private investment, agriculture, diversification, and a solid macroeconomic position. Also, the decrease in poverty rate has played a major role in the increase (World Bank, n. A). 201 1 In 2011, Philippines, and Malaysia posted a slight decrease in their gap growth while Thailand and Singapore steeply slide. Cambodia, on the other hand, increased its gap from 6% to 7. 1%.
The decrease in the gap growth in the Philippines was caused by payment of international debts resulting to less overspent spending in public infrastructure (Philippines Economy Profile, 2013). For Malaysia, the decrease was caused by the economic slowdown in the world especially within IS. S, Singapore and European Union that is very significant trading partners for Malaysia. Also, it was affected by the political cycle in the country for which fiscal policies are used in preparation for the incoming election which caused the government excessive insignificant spending (Iambi, 2012).
In Thailand, the steep decline was the consequence of flooding in Thailand central region inundating several key industrial estates and supply chain disruption caused by Japan’s tsunami and overall slowdown in the global economy (Michigan State University, 2012). The decline for Singapore GAP growth was in-line with the expectations of Singapore ministry for trade and industry. This was due to the persistent economic slowdown in the Europe and U. S. (Holland, 2012).
The further increase in Cambodia GAP growth was caused by the expansion of maternal health, early childhood care and primary education program in rural areas (world Bank, n. A). 2012 For Singapore, same explanation in 2011 The Philippines increased its GAP due to the extensive government spending on infrastructure. (Citation needed). The increase in Thailand GAP growth was driven by the increase in the domestic demand largely due to government spending and investment for flood reconstruction (Michigan State University, 2012).