Singapore’s Gross Domestic Product (GDP) saw a growth of 6.1% year-on-year in the 4th quarter, partly above the government’s estimate, said the ministry of trade and industry. Analysts’ expectation was 6.2%.
Singapore’s estimate for the economy is a growth of 3-5% in 2022 as the country is recovering from the pandemic’s decline. However, officials alarmed a flipside to the global economy and rising inflation.
The global economy is still struggling for recovery as supply chain impediment and increasing energy expenses, following friction between Russia and Ukraine, cause ascending inflation rate.
Trade and manufacturing have speeded up the country’s economic recovery; yet, this year’s expectations for tourism, air transport, and consumers sales are lower than what it was before the pandemic.
Gabriel Lim, Permanent Secretary of the Ministry of Trade and Industry, said supply chain bottlenecks in the world are predicted to linger during the first half of 2022; which would keep down industrial production and economic growth. He added constant supply issue along with high cost of energy amidst geopolitical agitation have impacted rising inflation in the world.
Priyanka Kishore, Head of India and South East Asia, and Sung-Eun Jung, Experienced macroeconomist, said economic growth is expected to slow down in the first half of 2022 while it’s taking long for reopening as a result of omicron spread and high inflation. Also, we expect finance and fiscal policies are tightening this year, they said in their research.