Singapore maintains its 2022 GDP forecast between 3% and 5%, after economic growth of 7.6% last year
SINGAPORE: Singapore kept its growth forecast for this year at between 3 and 5%, with data from Thursday February 17 showing the economy starting to recover in 2021.
Singapore’s economy grew 7.6% last year, mainly driven by manufacturing, finance and insurance, and wholesale trade, the Ministry of Trade and Industry said ( MTI) in a press release.
This is the fastest annual growth since the record 14.5% recorded in 2010.
The MTI also revised the gross domestic product (GDP) figure for the 2020 pandemic to a 4.1% decline from an earlier estimate of a 5.4% contraction.
The upward revision is due to better performance in sectors such as wholesale trade, transport and storage, information and communications, and finance and insurance, said the director of the economic division. from MTI, Yong Yik Wei.
“Preliminary estimates are based on data available at the time,” she told reporters. “As more complete data becomes available during the year through the results of the annual survey, the estimates are updated.”
“UNEQUAL” RECOVERY PROSPECTS FOR 2022
Looking ahead, MTI said the economy will continue to grow, albeit unevenly, in 2022.
It noted that Singapore’s external demand outlook has deteriorated “slightly” since its last report in November as many economies tightened restrictions to tackle the highly transmissible variant of Omicron.
Global supply bottlenecks remain and are expected to persist through the first half of this year. This could limit industrial production and growth in some external economies in the short term.
These ongoing supply chain issues, along with rising energy prices due to geopolitical tensions, have also exacerbated global inflationary pressures.
At the same time, downside risks to the global economy have increased, MTI said.
These include uncertainties about the trajectory of the COVID-19 pandemic and global supply chain disruptions, as well as faster-than-expected monetary policy tightening in advanced economies.
Energy prices also face “significant upside risks” amid supply issues due to escalating geopolitical tensions involving Russia and Ukraine, and in the Middle East, as well than unpredictable weather conditions.
“A spike in energy prices would exacerbate inflationary pressures and weigh on global economic growth,” MTI said.
Regarding its domestic outlook, MTI noted that Singapore’s high vaccination rate and regular rollout of boosters should “facilitate a further gradual easing of domestic and border restrictions.”
The country’s multi-departmental COVID-19 task force on Wednesday announced changes to its safety protocols, while adding new routes of travel for vaccination and streamlining border measures.
He also said that if things remain “well under control”, Singapore can take further important steps to ease measures after the peak of the Omicron wave passes.