Lies, Damn Lies and Statistics

So often we have heard about stories regarding the decline of real wage in the lower income group as well as the stagnation of salaries in the middle income group in Singapore. I took a look at the GDP per capita figures supplied by the Singapore Department of Statistics, instead of just the GDP numbers to negate illusion of economic growth solely due to an increase in population.

Per Capita GDP at Current Market Prices

Year S$
1998 35,115
1999 35,371
2000 39,683
2001 37,014
2002 37,762
2003 38,434
2004 42,833
2005 44,738
2006 46,832

From 1998 to 2006, the increase in GDP per capita was around 3.5% per annum.

Feeling sceptical, i decided to look for an alternative source of information, the International Monetary Fund website, for similar data. The below was what i found.

Per Capita Gross Domestic Product, Current Prices

Year S$
1998 35630.2
1999 37533.5
2000 36818.3
2001 36753.9
2002 40720.3
2003 38594.5
2004 38853.7
2005 39682.8
2006 41068.3

Based on these figures, the increase in GDP per capita from 1998 to 2006 was about 1.8% per annum.

My understanding of the term "Current Prices" is that inflation has not been taken into account yet. Please correct me if i am wrong. If we were to take the inflation rate to be at 2.5%, this means that Singaporeans as a whole are poorer. Furthermore with the stratification of the income distribution, you can see the sorry state of affairs the working class in Singapore are in. No wonder casinos have to be built. No wonder the retirement age has to be raised. No wonder cheap labour in allowed in to fill the coffers of the business owners. No wonder commiting sucide by jumping onto MRT tracks is getting popular. No wonder those who see through this charade have migrated and hence the brain drain.

The future doesn't seem as rosey as the Straits Times paint it out to be.