International Finance

Singapore economy to grow by 6.1% in 2021: AMRO

Singapore economy expansion_IF_Image
After a 5.4% contraction in the economy in 2020, Singapore’s economy is rebounding stronger

The Singapore economy is all set to expand by 6.1 percent this year after the economy contracted by 5.4 percent last year due to the Covid-19 pandemic, reported the ASEAN+3 Macroeconomic Research Office (AMRO). Going by the preliminary assessment by AMRO after its virtual meet with the Singaporean authorities, it mentioned that they have been able to successfully mitigate the effects of the Covid-19 pandemic with the help of the government’s skillful crisis management and effective policy measures. These steps also supported Singapore’s economy and labour market, and in turn, helped to minimise economic scarring.

AMRO’s Lead Economist Chaipat Poonpatpibul told the media, “The swift, sizeable, and more targeted policy measures have effectively cushioned the impact of the pandemic and supported the recovery. “Further support would be needed if the recovery falters due to a resurgence in local and overseas infections.”

In another survey conducted by the Monetary Authority of Singapore (MAS), it was predicted that Singapore’s economy is expected to grow by 15 percent in Q2 and by four percent in 2022. The 24 economists who responded to the survey by the Monetary Authority of Singapore (MAS) said that Singapore could perform beyond expectations if the pandemic is properly contained

While it definitely looks like Singapore is on track to become economically viable once again, experts mention that the outlook is uncertain because of the uneven recovery seen across sectors. While the manufacturing sector is expected to grow strongly due to the global recovery and robust electronics demand, the tourism sector will continue to see slower growth due to the ongoing pandemic containment measures and the slow pace of vaccination in most countries.

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