In a news article published by Reuters, the city state of Singapore has raised its 2021 GDP forecast after the economy expanded more that intiaally estimated in the second quarter.
This was attributed to vaccination progress in the country and also in other key markets. Gross domestic product is now forecast to grow 6 percent to 7 percent against its prior estimate for an expansion of 4 to 6 percent said its Ministry of Trade and Industry.
On a year on year basis, Singapore GDP grew 14.7 percent in the second quarter, higher than the 14.3 percent growth seen in the government’s advance estimate. According to a Reuters poll analysts had expected a 14.2 percent increase.
In absolute terms, GDP remained 0.6 per cent below its pre-pandemic level in the second quarter of 2019.
On a quarter-on-quarter seasonally-adjusted basis, the economy contracted 1.8 percent in the second quarter, a reversal from the 3.3 percent expansion in the prior quarter.
Gabrial Lim permanent secretary for the Ministry, barring a major setback in the global economy, the Singapore economy is expected to continue to see a gradual recovery in the second half of the year, supported in large part by outward-oriented sectors.
The added easing of border restrictions would also help in the recovery of consumer-facing sectors and alleviate labour shortages in sectors that are reliant on migrant workers
But the aviation- and tourism-related sectors will continue to be recover more slowly than previously expected, with activity expected to remain significantly below pre-Covid levels even by the end of the year.
Singapore also saw the small and open economy is charting an uneven recovery after posting its worst-ever recession last year due to the pandemic. Much of its fast growth this year is due to the low comparison base of last year when the virus paralysed the economy.
The central bank had maintained its accommodative monetary policy at its last meeting in April. The next policy review is due in mid-October.
The revised 2021 forecast was consistent with the current monetary policy stance, which remained appropriate, said Edward Robinson, the deputy managing director of the Monetary Authority of Singapo