Singapore’s economic growth this year is expected to reach 7%, and it will slow to below 5% next year

【2021-11-24 Source: Economic Daily】

  • Singapore’s economic growth is expected to reach 7% this year, but it will slow to below 5% next year, reflecting the varying pace of recovery in various industries.
  • The Ministry of Trade and Industry of Singapore announced that the gross domestic product (GDP) for the third quarter increased by 7.1% year-on-year, which was higher than the 6.5% initially estimated by the government. Analysts polled by Reuters originally estimated a growth of 6.5%.
  • The Ministry of Trade and Industry said that this year’s GDP growth rate is about 7%, which was originally predicted to be between 6% and 7%. The Ministry of Trade and Industry also forecast for the first time that economic growth next year is expected to be 3% to 5%.
  • Permanent secretary of the Ministry of Trade and Industry, Gabriel Lim said: “The recovery of various industries in the economy in 2022 will still be inconsistent.” He predicts that export industries such as manufacturing and wholesale trade will remain strong, while the prosperity of aviation and tourism-related industries will continue throughout 2022. Lower than the level before the epidemic.
  • About 85% of Singapore’s population of 5.45 million have been fully vaccinated. This week, some epidemic prevention and control measures have been relaxed, and quarantine-free travel channels have been opened with several countries.
  • The Ministry of Trade and Industry stated that continued supply disruptions, strong demand recovery, and rising prices of energy commodities may lead to more lasting inflation. This week’s data shows that Singapore’s October key price indicators recorded the largest increase in the past three years, mainly driven by rising service industries and food prices.
  • Head of Capital Markets Strategy at RBC, Alvin Tan said: “I expect economic growth momentum will rise from this, and Southeast Asia will continue to recover until early next year. In addition to its own domestic growth factors, Singapore will benefit from this.”