The Ministry of Trade and Industry (MTI) announced that Singapore’s economic growth in 2021 came in at 7.6%, up from the previous estimate of 7.2%. This growth figure was driven by the manufacturing, finance, insurance and wholesale trade sectors.
The 2020 growth figure was revised by MTI to a contraction of 4.1% as compared to minus 5.4%. Data from surveys showcased better performance from sectors such as transport, storage, wholesale trade and information and communications, resulting in better growth.
In 2021, the manufacturing sector grew by 13.2%, accelerating from the 7.5% growth in 2020. Within the sector, output across all clusters rose, with the precision engineering, electronics and transport engineering clusters registering the largest output increases.
The construction sector experienced growth of 20.1% compared to negative growth in 2020. They were supported by both public and private sector construction works. The Service industries grew by 5.6%, a reversal from the minus 5.1% in 2020.
According to the Economic Survey Report, the GDP forecast for 2022 will be maintained at 3 to 5% and the economy is ‘expected to continue to expand this year, although the outlook for the various sectors remains uneven’. It is projected that growth prospects for sectors such as information and communications, finance, insurance wholesale trade and manufacturing remain strong given the gradual global economic recovery. Manufacturing will be supported by sustained global demand for semiconductors and semiconductor equipment and there will be strong demand for technology and digital solutions and credit and payment processing services.
The recovery of the aviation and tourism-related sectors is expected to be slow as potential virus variations could delay the lifting of travel restrictions.
The retail trade and food and beverage services are also expected to see a gradual recovery as domestic restrictions and consumer behavioral pattern improves, however, it will not return to pre-covid 19 levels due to the low visitor arrivals.
The construction and marine offshore engineering sectors are likely to continue and do progressively better as the easing of border restrictions allows more migrant workers from South Asia to enter for work.