“Key drivers for retail sales in Singapore include the tight labour market seen year to date, whilst the gradual reopening of Asia’s borders should support tourism-led spending,” Gan writes.
Retail sales in Singapore are expected to return to pre-pandemic levels by the end of this year, according to RHB Group Research economist Barnabas Gan, who has forecast a 10% y-o-y growth in retail sales for 2022, from the 11.1% expansion that was posted in 2021.
Already, Singapore is showing signs of improvement. Singapore’s retail sales expanded by 17.8% y-o-y in May, marking a third consecutive month of increase. Retail sales excluding motor vehicles surged 22.6% y-o-y while 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.
