Preliminary data on Monday showed that Singapore’s economy grew slightly higher than expected in the fourth quarter year-on-year.
Last year, countries worldwide shifted their coronavirus strategies to respond to the pandemic. Due to this, the recovery of this financial and transportation hub was uneven.
The Ministry of Trade and Industry said that the gross domestic product (GDP) from October to December increased by 5.9% yearly. Economists had expected an increase of 5.4%.
The seasonally adjusted GDP grew by 2.6% month-on-month from October to December.
Singapore’s Economy Is Growing at The Fastest Rate Since 2010
Singapore’s economy grew fastest in more than a decade in 2021. The country emerged from its worst recession in history due to the severe blow to activities caused by the pandemic.
Preliminary data released on Monday showed that the city-state’s economy would grow by 7.2% in 2021, basically in line with the government’s official forecast, and rebound from a record contraction rate of 5.4% in 2020.
As governments worldwide shift their coronavirus strategies to respond to the pandemic and stay away from the “zero COVID” policy, this financial and transportation hub, usually regarded as a weather vane for global growth, has experienced a difficult recovery.
Singapore’s annual GDP growth is the fastest since the economy emerged from the global financial crisis in 2010 at 14.5%.
The government has previously stated that it expects GDP to grow by 3% to 5% in 2022.
Economists predict that the central bank will tighten policy again in April this year due to the continued price pressure. Like major global financial centers, Singapore’s inflation rate has risen in the past few months. In November, the overall prices rose by 3.8%, the fastest in nine years.