Singapore: The advance estimates issued by the Ministry of Trade and Industry (MTI) on Monday (January 3) show that during the COVID-19 pandemic, Singapore’s economy grew by 7.2% in 2021, rebounding from the 2020 recession.
Singapore’s economy shrank by 5.4% in 2020-the first annual contraction since 2001 and the country’s worst recession since independence.
Last year, Singapore announced the beginning of a transition to pandemic COVID-19 because it saw a wave of new infections caused by the more contagious variant of Delta.
Its vaccination program has been expanded to include booster injections and more age groups, and new measures have been taken to curb the spread of coronavirus.
The estimates announced on Monday are in line with MTI’s estimates in November last year. The Ministry has narrowed its 2021 gross domestic product (GDP) growth forecast to “approximately 7%.”
Preliminary data shows that in the fourth quarter of 2021, GDP grew by 5.9% year-on-year, which was lower than the 7.1% growth in the previous quarter.
On a seasonally adjusted quarter-to-quarter basis, the economy grew by 2.6% in the fourth quarter of 2021, higher than the 1.2% growth in the previous quarter.
All economic sectors in the whole year and the fourth quarter recorded year-on-year growth.
With the exception of the construction industry, the performance of all industries improved in the fourth quarter after seasonal adjustments.
The GDP estimates for the fourth quarter of 2021 are mainly calculated based on data from October and November last year. MTI stated that they have given early signs of GDP growth this quarter and may revise them after more comprehensive data is available.
manufacturing
Manufacturing performance in the fourth quarter increased by 14% year-on-year, higher than the 7.9% in the third quarter.
The industry grew by 12.8% throughout the year.
MTI stated that the growth in the last three months of 2021 was supported by the expansion of production in all clusters.
The ministry stated that, driven by the continued global demand for semiconductors and semiconductor equipment, electronics and precision engineering, in particular, continue to record strong output growth.
On a seasonally adjusted quarter-on-quarter basis, the manufacturing sector grew by 4.2%, up from 0.2% in the third quarter.
Construction industry
The construction industry grew by 2% year-on-year in the fourth quarter, down from 66.3% in the third quarter.
The industry grew by 18.7% throughout the year.
However, MTI stated that in absolute terms, the added value of the construction industry in the fourth quarter of 2019 was still 26% lower than the pre-pandemic level.
The ministry stated that this was because activities at construction sites continued to be pressured by labor shortages due to border restrictions on the entry of migrant workers.
On a seasonally adjusted quarter-on-quarter basis, the industry shrank by 4.4% in the fourth quarter, reversing the 4.9% growth in the previous quarter.
Wholesale and retail trade, transportation and storage
In the service sector, the wholesale and retail trade and transportation and warehousing sectors grew by 4.3% in the fourth quarter, continuing the 6.1% growth in the previous quarter.
The department stated that all departments within the group expanded during the quarter.
“In particular, the wholesale trade sector has grown steadily following the strong performance of Singapore’s merchandise exports,” MTI said.
“In contrast, the growth in the transportation and storage sector was partly due to the low base effect, as travel restrictions severely affected the air transportation sector in the fourth quarter of last year.”
Overall, the value added of this group of industries was still 2.3% lower than the pre-pandemic level in the fourth quarter.
On a seasonally adjusted quarter-on-quarter basis, the group grew by 2.3% in the fourth quarter, reversing the 0.6% contraction in the previous quarter.
Information and communication, finance and insurance, professional services
The information and communications, finance and insurance, and professional services industries grew by 6% overall in the fourth quarter.
This is a slowdown from the 8% growth in the previous quarter.
MTI stated that all departments within the group are expanding, and the information and communications department in particular has benefited from strong demand for IT and digital solutions, as well as strong game and software release activities.
It added that the financial and insurance industries are partly supported by fund management activities.
After seasonal adjustments, industries in this group grew by 3.1% in the fourth quarter, up from 1.5% in the previous quarter.
Other service departments
The remaining service sectors recorded a growth of 3.1% in the fourth quarter, including accommodation and food services, real estate, administrative and support services, and other services.
MTI stated that in this group, all sectors except accommodation and food services are growing.
The department stated that the weak performance of the department compared to the same period in 2020 was mainly due to continued travel restrictions and stricter domestic restrictions, such as group dining restrictions, compared with the same period in 2020.
Overall, the value added of this group of industries is still 7.1% lower than the pre-pandemic level.
On a seasonally adjusted quarter-on-quarter basis, this group grew by 4.9% in the fourth quarter of 2021, up from 1.5% in the previous quarter.
