Coronavirus: Singapore exits pandemic-induced recession as economy grows 1.3 per cent

City state shows signs of recovery after three consecutive quarters of contraction, as manufacturing posts stronger-than-expected growth of 10.7 per cent

But experts are cautious about the outlook for the second quarter, saying a rise in infections and new restrictions may dampen prospects

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Medical personnel at a swab testing station in Singapore. Photo: EPA

Published: 8:13am, 25 May 2021Updated: 10:58pm, 25 May 2021

Singapore’s economy grew for the first time after three consecutive quarters of contraction, in a sign the city state is recovering from last year’s pandemic-induced recession.

But with tighter social distancing measures having been introduced this month amid a recent increase in domestic infections, analysts say it is unclear whether the growth in the first quarter of this year can be sustained.

The Ministry of Trade and Industry on Tuesday said the economy grew 1.3 per cent between January and March on a year-on-year basis, an upwards revision from its advance estimate of 0.2 per cent. On a quarterly, seasonally adjusted basis, the Singapore economy grew 3.1 per cent. Singapore’s export-oriented and trade-dependent economy is often seen as a bellwether for global growth.

The improvement came on the back of a stronger-than-expected performance in the manufacturing sector, which grew 10.7 per cent year on year. This was driven by output expansions in the electronics, precision engineering and chemicals clusters, the trade ministry said.

The ministry maintained its forecast for full-year GDP growth of between 4 and 6 per cent in 2021, but added that it would review it next quarter when there is greater clarity over global and domestic economic situations. Last year GDP contracted 5.4 per cent.

People who had visited a mall which became a coronavirus cluster queue up for swab tests in Singapore. Photo: Edgar Su