Singapore releases GDP update and economic data for the third quarter of 2021

View of Singapore skyline.

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Singapore-Singapore’s economic growth rate in the third quarter was faster than initially estimated, and the government expects that the growth rate in 2021 will reach about 7%.

The Ministry of Trade and Industry said on Wednesday that Singapore’s economy grew 7.1% year-on-year in the third quarter.

Nabi The official estimate is 6.5% year-on-year growth The ministry expected last month. But this is slower than the 15.2% year-on-year growth recorded in the second quarter.

The Ministry of Economy of Singapore stated that after quarter-to-quarter adjustments, Singapore’s economy grew by 1.3% in the third quarter, a reversal from the 1.4% contraction in the second quarter.

The following is the performance of each industry in the third quarter:

  • The manufacturing industry increased by 7.2% year-on-year. All clusters in the industry have expanded, except for the biomedical manufacturing cluster.
  • The construction industry grew by 66.3% year-on-year, mainly due to the low base of comparison caused by output growth in the public and private sectors in the third quarter.
  • In the service industry, real estate increased by 16.8% year-on-year, mainly supported by the activities of the private residential property sector.
  • At the same time, Singapore’s food and beverage service industry shrank by 4.2% compared to the same period last year. Tighten dine-in and activity restrictions To curb the spread of Covid-19.

Singapore, a city-state in Southeast Asia, has been fighting the surge of Covid-19 infection, even though approximately 85% of the population has completed vaccination.

But in recent weeks, the government has gradually relaxed domestic and border restrictions-allowing more activities to resume.

Outlook for 2021 and 2022

The Ministry of Trade and Industry revised its estimate of Singapore’s economic growth in 2021 to around 7%-the previous estimate ranged from the upper limit of 6% to 7%.

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The ministry stated that Singapore’s economy is expected to grow by 3% to 5% next year.

“It is expected that the recovery of various sectors of the economy will remain uneven in 2022,” the ministry said.

It explained that, given strong external demand, the growth prospects of export-oriented sectors such as manufacturing and wholesale trade remain strong.

But it added that as global travel demand takes time to recover, and travel restrictions in major tourist source markets may persist, the recovery of industries related to aviation and tourism may be gradual.

The ministry warned that long-term supply disruptions, strong demand recovery and rising energy commodity prices could lead to more persistent inflation.

Singapore is a small and open economy that relies heavily on global trade. The country’s core inflation rate in October increased by 1.5% from the same period last year – Official data on Tuesday showed that this was the biggest increase in the past three years.

Excluding accommodation and private transportation, core inflation is the preferred price indicator of the Central Bank of Singapore.

Last month, the Monetary Authority of Singapore became one of the first Asian central banks to take action. Tighten monetary policyMAS stated that this move “will ensure medium-term price stability while recognizing the risks facing economic recovery.”

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