Singapore updates first quarter GDP, full-year 2021 economic forecast

On April 1, 2020, a man wearing a face mask passed a mural in Singapore’s Chinatown.

Roslan Rahman | AFP | Getty Images

Singapore — Singapore’s economy grew at the fastest pace in over a year in the first quarter of 2021. This was backed by better-than-expected manufacturing, official data showed on Tuesday.

However, the government has warned of the “increasing uncertainty” that will result from the Covid-19 pandemic in the coming months, while maintaining Singapore’s growth forecast for 2021 from 4% to 6%.

The Ministry of International Trade and Industry said in the latest economic information that the Southeast Asian economy expanded 1.3% in the quarter ending March compared to a year ago.

This is Singapore’s highest growth rate since the fourth quarter of 2019, Official pre-quote 0.2% expansion. The latest GDP prints also outpaced the 0.9% year-on-year growth predicted by analysts in a Reuters poll.

On a quarterly basis, Singapore’s economy grew 3.1%. This is faster than the government’s previous estimate of 2%.

Here’s how the different sectors worked in the first three months of 2021:

  • Manufacturing grew 10.7% from a year ago due to increased production in electronics, precision engineering and chemical clusters.
  • Construction shrank by 22.7% year-on-year, but was squeezed by a decline in both public and private sector projects.
  • The service production industry shrank only 0.5% from a year ago, improving from a 4.7% shrink in the previous quarter.

Singapore has been battling the increase in Covid-19 in recent weeks.As a result, the government Imposing stricter measures for about a month Scheduled from May 15th Air travel bubble with Hong Kong It was postponed again.

The Ministry of Trade and Industry said tightening domestic regulations and border control was a “retreat” to specific segments of the economy.

Song Seng Wun, an economist at Malaysian bank CIMB Private Banking, said Singapore’s economic trajectory relies heavily on the outbreak of Covid-19 in the region and the global economic recovery.

This is because Singapore’s domestic market is “quite small,” while exports make up to three times the size of the economy, Son told CNBC. “Street Signs Asia” After the latest GDP data release. According to World Bank data, Singapore’s export ratio to GDP is over 170%, making it one of the highest in the world.

“Global demand for Singapore’s major exports remains fairly strong, so export-oriented industries, especially commodities, are certainly boosting Singapore’s growth,” Son said.

Overall, the Ministry of Trade and Industry said Singapore’s economy should recover again this year “in parallel with the recovery of the global economy and further development of domestic vaccination programs.” He added that he would review the August economic forecast.

As of Monday, the country reported more than 61,800 Covid cases and 32 deaths since its inception in 2020, data from the Ministry of Health showed. Nearly two million people in Singapore, or about one-third of the population, have received at least one coronavirus virus as of May 17. According to official data.

Singapore updates first quarter GDP, full-year 2021 economic forecast

Source link Singapore updates first quarter GDP, full-year 2021 economic forecast

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