The recent stats from Singapore’s economy wrap-up show the fastest growth in the entire decade, even after the worse recession posed by the Covid-19 pandemic. As compared to the reports from the year 2010, the economy grew by almost 7.2% in the previous year; which is much higher than the estimates provided by the field experts, said Ministry of Trade and Industry (MTI), Singapore.
As per the predictions made by MTI in the month of November, it was expected that gross domestic product (GDP) in 2021 may grow by 7%, considering the top end of the prior estimates limited to 6%. The economy contracted by almost 5.4% in the year 2020 due to pandemic related crisis.
While addressing the public on New Year’s Eve recently, Lee Hsien Loong, Prime Minister, stated that the economy may grow by 3 to 5% in the year 2022 while reiterating the maiden forecasts made by MTI in the month of November 2021.
The stats obtained from the fourth quarter of the previous year, the economy improved by 5.9% in comparison to 2020, indicating moderate growth of 7.1% in the previous quarter that was further fuelled by low base comparison.
If we consider the Bloomberg poll forecasts made by experienced economists regarding the fourth-quarter growth in GDP. The estimates were 5.1% year on year with the full-year expansion of 7.1% in the year 2021. On the other side, the seasonally adjusted quarter-on-quarter estimates state that the economy expanded by almost 2.6% during the October-December quarter; which is faster than the recorded 1.2% growth during the previous quarter.
Analysts also revealed that quarterly gains indicate huge momentum in the economic growth, even after the global Omnicron variant which forced the Singapore government to suspend flight tickets on vaccinated travel lanes up to 20th January 2022.
Chief Economist, Ms. Selena Ling, also said that Republic’s Growth Outlook 2022 will greatly depend on Covid-19 conditions and associated measures, including social distancing rules. It is expected that the vaccinated travel lanes may provide some support to the service sector while easing the labor shortages that have restricted construction activities for a long past.
She also added that MTI’s growth forecasts for 2022 reflect limited improvements in the manufacturing sector as it may first require the construction and service sectors to pick up the growth. However, the final quarter of the year 2021 shows that manufacturing was the best performing sector in the country with an exceptional rise in output by 14% year on a yearly basis; which is almost double in comparison to the 7.9% growth in the third quarter. This sector presented an improvement of 12.8% in the entire year while staying 7.3% up from the previous year. On the other side, the construction sector improved by 2% during the fourth quarter of 2021, in comparison to the fourth quarter of 2020. However, the value-added remained 26% lower from this sector due to Covid-19 related restrictions on the worksites. Furthermore, the service industries improved by 4.6% during the fourth quarter with a 5.2% growth in comparison to the previous year.
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