Singapore’s economy grows at its fastest pace in more than a year

SINGAPORE — Singapore’s economy grew at its fastest pace in more than a year in the primary quarter of 2021, helped by a stronger-than-expected manufacturing sector, official information confirmed Tuesday.

But the federal government warned of “heightened uncertainties” arising from the Covid-19 pandemic in the months forward whereas sustaining its development forecast for Singapore at 4% to six% for 2021.

The Southeast Asian economy expanded by 1.3% in the quarter ended March in contrast with a year in the past, the ministry of commerce and trade stated in an financial replace.

That’s the best development fee in Singapore for the reason that fourth quarter of 2019 and an enchancment from official advance estimates of a 0.2% enlargement. The newest GDP print additionally exceeded the 0.9% year-on-year development projected by analysts in a Reuters ballot.

On a quarter-on-quarter foundation, the Singapore economy grew 3.1% — sooner than the federal government’s earlier estimates of two%.

Here’s how the completely different sectors carried out in the primary three months of 2021:

• Manufacturing expanded by 10.7% from a year in the past, lifted by stronger output in the electronics, precision engineering and chemical substances clusters.
• Construction contracted by 22.7% year on year, weighed down by declines in each private and non-private sector tasks.
• Services-producing industries shrank a slight 0.5% from a year in the past — bettering from the 4.7% contraction in the earlier quarter.

Singapore has been battling a rise in Covid-19 instances in current weeks, which led the federal government to impose stricter measures for about a month beginning May 15. A deliberate air travel bubble with Hong Kong was additionally postponed.

The commerce and trade ministry stated the tightening of home restrictions and border controls is a “setback” to sure segments of the economy.

But the Singapore economy total ought to nonetheless get better this year “in tandem with the worldwide financial rebound and additional progress in the home vaccination programme,” the ministry stated. It added that it’s going to assessment its financial forecast in August.

As of Monday, the nation has reported more than 61,800 Covid instances and 32 deaths for the reason that begin of 2020, information by the well being ministry confirmed. Close to 2 million folks in Singapore — or round one-third of inhabitants — have obtained at least one dose of the coronavirus virus as of May 17, official information confirmed.