Singapore as well as other countries had to deal with numerous challenges created by Covid-19 in 2021. Still, the country’s economy grew slightly more than expected in the fourth quarter from a year earlier, preliminary data showed on Monday.
It saw an uneven recovery last year as countries changed their coronavirus strategies regarding the pandemic.
The country’s gross domestic product (GDP) expanded by 5.9% in the fourth quarter on a year-on-year basis. Economists expected Singapore’s GDP to grow by 5.4%. It grew by 2.6% on a quarter-on-quarter seasonally adjusted basis in the quarter.
Singapore’s economy in 2021
Its economy expanded by 7.2% in 2021. Singapore’s economy rebounded from its worst recession since independence triggered by the pandemic. The city-state’s economy declined by 5.4% in 2020.
The financial and transport hub fell into its worst recession in 2020 as businesses and international borders shut down, choking Singapore’s trade and tourism economic lifeline.
Officials in Singapore initially imposed strict measures to restrict movement and gatherings. However, Singapore changed its position regarding the pandemic. The country shifted to a policy of living with the virus as the majority of residents got fully vaccinated.
It reported a total of 280,290 cases with 829 deaths as of January 2.
Manufacturing, a pillar of the local economy, jumped by 12.8% year-on-year driven by global demand for semiconductors and semiconductor equipment.
Besides, construction, a driver of domestic growth, grew by 18.7% for the full year.
Prime Minister Lee Hsien Loong talked about the country’s economy. Nevertheless, he said in his New Year message that Singapore was not out of the woods yet. Lee Hsien Loong stated that the fight against Covid-19 is not over.
He mentioned that the economy is expected to grow by 3.0-5.0% this year.
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