Singapore economy expands 7.6% in 2021

by BERNAMA / pic by TMR FILE

SINGAPORE – Singapore’s economy expanded by 7.6 per cent for the whole of 2021, rebounding from the 4.1 per cent contraction in 2020, said the republic’s Ministry of Trade and Industry (MTI).

According to MTI, the manufacturing sector grew by 13.2 per cent year-on-year (y-o-y), accelerating from the 7.5 per cent growth recorded in 2020.

“Within the sector, output across all clusters rose, with precision engineering, electronics and transport engineering clusters registering the largest output growth,” it said in a statement today.

Meanwhile, the construction sector expanded by 20.1 per cent y-o-y- a turnaround from the 38.4 per cent contraction the previous year, supported by both public and private sector construction works.

The services-producing industries grew by 5.6 per cent y-o-y, a reversal from the 5.1 per cent contraction  previously, it said.

All services sectors had also posted expansions, with the exception of the administrative and support services sector, said the ministry.

As for the fourth quarter of 2021, the Singapore economy grew by 6.1 per cent y-o-y, moderating from the 7.5 per cent expansion in the preceding quarter.

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 2.3 per cent, faster than the 1.5 per cent growth recorded in the previous quarter.

On the economic outlook for 2022, MTI had maintained its 2022 Gross Domestic Product (GDP) growth forecast at between 3.0 per cent and 5.0 per cent.

It said Singapore’s economy is expected to continue to expand this year, although the outlook for the various sectors remains uneven.

MTI said growth prospects for outward-oriented sectors such as manufacturing and wholesale trade remain strong, given the continued global economic recovery.

However, it noted that the recovery of the aviation and tourism-related sectors is expected to be slow as recurring COVID-19 outbreaks and potential virus mutations could delay the lifting of travel restrictions globally, and travel demand is also likely to take time to recover.

The consumer-facing sectors such as retail trade and food and beverage services are projected to see a gradual recovery over the course of the year as domestic restrictions are progressively eased, and consumer sentiments improve amidst the turnaround in labour market conditions.

Meanwhile, activities in the construction and marine and offshore engineering sectors are projected to continue to recover on the back of the progressive easing of border restrictions on the entry of migrant workers from South Asia.