Singapore’s economy is set to grow faster than previously forecast in 2021 thanks to improved global demand and a relaxation of pandemic restrictions in the city-state.
The country’s gross domestic product is expected to grow 6.0% to 7.0% this year, up from the previous forecast of 4.0% to 6%, the Ministry of Commerce and Industry said on Wednesday.
The Covid-19 situation in Singapore has stabilized and its vaccination program is still making good progress, the MTI said. Subject to a major global setback, the Singapore economy is expected to recover gradually in the second half of the year, largely driven by outward-facing sectors.
Gradually easing domestic and border restrictions while vaccination rates continue to rise will also help support the recovery of Singapore’s consumer industry and alleviate labor shortages for companies that rely on migrant workers, the ministry said.
From April to June, Singapore’s GDP grew 14.7% year over year, according to data released by the MTI. This compared to the forecast of 14.3% in the second quarter.
On a seasonally adjusted basis compared to the previous quarter, GDP contracted by 1.8% in the period April to June, the data showed. This compared to the forecast of a 2.0% decline in the second quarter.