Singapore’s economy on course for fastest growth in more than a decade
- The city state’s GDP grew 2.6 per cent on a seasonally adjusted basis from the previous three months, the trade ministry said
- The last quarter acceleration helped push growth for the full year to 7.2 per cent, the fastest since 2010
Gross domestic product expanded 2.6 per cent on a seasonally adjusted basis from the previous three months, according to advance estimates on Monday from the Ministry of Trade and Industry, beating a median 2.1 per cent forecast in a Bloomberg survey of economists.
That last quarter acceleration helped push growth for the full year to 7.2 per cent, the fastest since 2010. Economists had forecast an expansion of 7.1 per cent, while the trade ministry in November said it expected “about 7 per cent.”
“The Singapore economy after a robust 2021 performance is on track for normalisation,” said Selena Ling, head of treasury research and strategy at Oversea-Chinese Banking Corporation.
After recovering from the worst of the pandemic, the rapid spread of the Omicron variant and an economic slowdown in China – Singapore’s largest trading partner – are now clouding the outlook for the city state, which is highly reliant on global trade.
The Southeast Asian nation expects to grow 3 per cent to 5 per cent this year, Lee said, reiterating an earlier forecast from the trade ministry.
The economy last quarter grew 5.9 per cent from the same period a year ago, the trade ministry also said on Monday, compared with a median estimate of 5.1 per cent in a Bloomberg survey.
Separately, Singapore on Monday posted a preliminary 5 per cent rise in private home prices in the fourth quarter, the most since 2009.
The government implemented a package of measures to cool its property market last month, including raising stamp duties and tightening loan limits.