The optimism in Singapore’s economy stems from its strategy of treating the virus as endemic and the planned gradual relaxation of the current movement restrictions in the next few months, the central bank said in its half-yearly macroeconomic review on Oct 28.
After experiencing growth in “fits and starts” since the beginning of the year, Singapore can look forward to finishing 2021 with its economy continuing on the expansion path. With output having returned to pre-pandemic levels in 3Q2021, the Monetary Authority of Singapore (MAS) estimates the Republic’s gross domestic product (GDP) will come in at 6% to 7%, or the upper end of its official forecast range for this year.
If the momentum continues through 2022, the central bank estimates that growth will be “slower, but still above trend pace”, barring downside risks from global economic developments and further mutations of the Covid-19 virus.
