Singapore economy’s hike in the 3rd quarter

Singapore economy’s hike in the 3rd quarter

Singapore’s economy grew quicker in the third quarter than expected, and the government predicts growth of roughly 7% in 2021. According to the Ministry of Trade and Industry, the Singapore economy increased 7.1 percent in the third quarter compared to the same period last year.

That was higher than the ministry’s official advance estimate of 6.5 % year-on-year growth released last month. However, it is slower than the 15.2% year-over-year rise seen in the second quarter. According to the ministry, the Singapore economy grew by 1.3 % quarter-on-quarter. It was seasonally adjusted in the third quarter, up from 1.4 % shrinkage in the second quarter.

Hikes in the 4rth quarter 

Manufacturing increased by 7.2 % year over year. Except for the biomedical manufacturing cluster, all clusters within the industry grew.

Construction output increased by 66.3 % year over year. This was due to a low comparison base, as both public and private sector output increased in the third quarter.

Real estate expanded 16.8% year over year among service industries, fueled mostly by activity in the private residential property category.

Meanwhile, when Singapore tightened dine-in and event restrictions to combat the spread of COVID-19, the food and beverage services industry declined 4.2 % year over year. Singapore, a city-state in Southeast Asia, has been dealing with an outbreak of COVID-19 infections even though roughly 85 % of the population has had their vaccinations done. However, the government has been progressively easing internal and border restrictions in recent weeks, enabling more activity to restart.

Outlook on Economy

The commerce and industry ministry raised its prediction for Singapore’s economic growth in 2021 to approximately 7%, higher than the prior range of between 6% and 7%. According to the ministry, Singapore’s economy should rise by 3% to 5% next year.

“In 2022, the recovery of various sectors of the economy is likely to be uneven,” according to the ministry. Given strong external demand, it noted that development prospects for outward-oriented industries such as manufacturing and wholesale commerce remain bright. However, recovery in the aviation and tourism industries should be modest. Global travel demand will take time to recover, and travel restrictions in important tourist source economies may linger. The ministry cautioned that prolonged supply interruptions, combined with a sharper uptick in demand and rising energy commodity costs, might lead to more chronic inflation.