Singapore economy seen to recover after Q2 slump
Singapore’s economy recorded a contraction in the second quarter, following a bout in new COVID-19 outbreaks. However, economists anticipate a quick rebound as global growth picks up and inoculation rates increase.
Alex Holmes, economist at Capital Economics, expects gross domestic product (GDP) growth to achieve the government’s estimate this year of 4%-6%.
The economy contracted a seasonally adjusted 2%, while GDP grew 14.3% on an annual basis in the second quarter of 2021.
The manufacturing sector grew 18.5%, while the construction sector recorded an expansion of 98.8%.
GDP recorded a decline of 13.3% year-on-year in the second quarter of 2020 driven by the implementation of lockdowns to curb the spread of the coronavirus.
However, the city-state still achieved the best economic growth in more than a decade on a year-on-year basis.