Singapore revises 2021 GDP forecast as inoculation rates rise
Singapore’s economy grew faster than expected in the second quarter, prompting the government to revise its prediction for 2021. This came after a significant progress in COVID-19 inoculation at home and in other significant markets.
Gross domestic product (GDP) grew 14.7% year-on-year in the second quarter, beating the initial government and analysts’ forecasts of 14.3% and 14.2%, respectively.
On a quarter-on-quarter seasonally adjusted basis, an economic contraction of 1.8% was recorded in the second quarter. The figure was a downward reversal from a 3.3% increase in the previous quarter.
GDP placed 0.6% below its pre-pandemic level in the second quarter of 2019.
The Ministry of Trade and Industry said GDP is now seen to climb 6% to 7% in 2021, an upward revision from an earlier prediction of 4% to 6% growth.
Gabriel Lim, permanent secretary for trade and industry, said the economy is expected to maintain its gradual recovery in the second half of the year. It will be aided by outward-oriented sectors and the easing of border restrictions.