“Key drivers for retail sales in Singapore include the tight labour market seen ytd, whilst the gradual reopening of Asia’s borders should support tourism-led spending,” the economist writes.
RHB senior economist Barnabas Gan believes that Singapore’s retail sales will return to pre-Covid levels by the end of 2022, with a forecast of 10% growth in 2022 from the 11.1% expansion in 2021.
Already, Singapore is showing signs of improvement. Singapore’s retail sales expanded by 17.8% y-o-y in May 2022, marking a third consecutive month of increase. Excluding motor vehicles, retail sales surged 22.6% y-o-y, as motor sales dipped 13.4% y-o-y. This growth was primarily led by higher spending in departmental stores and in selected discretionary goods such as wearing apparel & footwear, watches & jewellery, as well as recreational goods.
