Ever since COVID-19, Singapore’s economy plunged.
It is understandable since the tourism industry contributes 4 per cent to its Gross Domestic Product (GDP).
After all, imagine having 4 per cent of your salary disappear. *poof*
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Although 4 per cent does not seem like much, this 4 per cent is needed to maintain our standard of living.
Luckily, we are in the stage of recovery.
Singapore Economy will Maintain at 4 – 6% in 2021
As stated by the Ministry of Trade and Industry (MTI), the Singapore economy will maintain Singapore’s GDP at 4.0 to 6.0 per cent this year. Â
Singapore’s economy contracted by 5.4 per cent in 2020, as compared to the 1.3 per cent growth in 2019.
Trade-related services sectors like wholesale trade and water transport will benefit from the pick-up in external demand.
The manufacturing sector will expand faster than its projected rate due to the demand from 5G and automotive markets.
Information and Communications will have a steady growth due to sustained enterprise demand for IT and Digital solutions. That is also due to the need for credit and payment processing services.
Finance & Insurance sectors are expected to post steady growth as well.
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Other Industries’ Growth will be Slower and Weaker
Due to travel restrictions, tourism, aviation and consumer-facing retail food and beverage services will find this period an uphill battle.
The construction sector will also be restrained by safe-management measures.
No one’s surprised, of course.
Uncertain Global EconomyÂ
So, how do we do compared to other countries?
While there’s no crystal ball to predict the future, it’s a fact that the labour market in America is still struggling with recovery. Another 793,000 American workers filed for first-time unemployment benefits two weeks ago.
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The Biden administration is expected to supply another $2 trillion of deficit-financed support on top of the $4 trillion of relief they supplied in 2020.
Up north, due to the recent resurgence in infections, Malaysia’s GDP shrunk 5.6%.
Now, despite the gloomy news, not everything’s bad.
Singapore’s COVID-19 situation is Under Control
With the vaccination programme rolling out to all seniors from 22 Feb, Singapore’s COVID-19 situation is currently under control.
As of 15 Feb, all COVID-19 cases in Singapore are imported cases. That means we are doing a good job with sanitizing our hands and distancing ourselves from one another responsibly.
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The global COVID-19 cases declined 17% last week, the lowest number of cases since the week of 26 October 2020.
TL;DR The economy is still not good but it is getting better.
That’s not something you’d have read in the last 12 months.
Featured Image: joyfull / Shutterstock.com
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