Singapore’s economy is likely to stage a better-than-expected recovery this year after posting in 2020 its worst recession on record. This optimism comes as the republic unexpectedly eked out a 0.2% y-o-y growth in the first quarter of the year, reversing three previous quarters of contraction that was caused by the pandemic.
With this, Singapore’s real gross domestic product (GDP) reached 99.6% of its pre-Covid-19 levels, thereby enabling the economy as a whole to almost recoup the output lost in the first half of 2020, notes the Monetary Authority of Singapore (MAS) in its biannual economic review released on April 28.
The central bank estimates that Singapore’s GDP will top 6% this year, above the current official estimate of the “upper end of the 4%–6%” range. This is barring a significant setback in activity from a weaker recovery of the global economy, or a surge in locally transmitted coronavirus cases.