The Importance Of Economic Growth

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1. Introduction
A strong and sustainable economic growth is the rate of growth which can be maintained without creating other significant economic problems. There is an economic growth when Gross Domestic Product (GDP) at constant prices, increases overtime known as real output ( Economics Online Ltd, 2014).

Since the gaining of independence in 1963, Singapore economy has grew rapidly that result to be one of the top highest GDP per capita in the world. This year, there is a rise of 7 percent in Singapore GDP to 3.1 percent in the third quarter. It is shown that there is a rise of 2.8 percent in the third quarter from last year (Trading Economics, 2014).

Singapore public housing has been the bedrock of Singapore 's asset-ownership programme. Today, 80 percent of Singaporeans are living in Housing and Development Board (HDB) flats.

2. Rationale for promoting economic growth
Over the recent years, there has been a rapid increase in the price of public housing. This rapid and sharp increase in price has become an obstacle not only to the consumers but also to all potential up graders and future households (The Business Times, 2014). Therefore, government is reducing the price of Singapore public housing to a sustainable level so as to promote economic growth.

2.1 Homeownership affordability
Housing is a basic human need; it is an important asset to everyone. The government wants to introduce home ownership to all citizens by making the new HDB price more affordable for
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