Singapore’s economy set for a strong recovery next year, GDP to grow by 7%

singapore economy

Singapore’s is set for a strong next year after a deeper-than-expected slump amid the coronavirus pandemic.

According to a report by the Asean+3 Macroeconomic Office (Amro), Singapore’s is expected to recover strongly next year with GDP expected to grow by 7% after shrinking 6% this year.

The GDP growth forecast for this year was downgraded from Amro’s earlier projection of 0.8 per cent released in March.

In its August update of the Asean+3 Regional Economic Outlook 2020 report released on Thursday (Aug 6), Amro said Singapore’s will start to take shape in the second half of 2020, aided by the manufacturing and financial services sectors that have performed relatively better than other sectors.

singapore economy

Dr Hoe Ee Khor, Amro’s chief economist, said that with the return of cleared for work, the construction sector will also start to contribute to growth in earnest later this year and further boost the in 2021.

“We expect to bounce back strongly in the second half and into 2021,” he said in a virtual media briefing.

However, services sectors such as tourism and hospitality will continue to suffer until a is widely available to allow lifting of curbs on international travel, he noted.

The Ministry of Trade and Industry (MTI) expects Singapore’s GDP to shrink by between 4 per cent and 7 per cent this year. So far, there is no official forecast for 2021.

Across the 14-nation Asean+3 region, Amro expects a U-shaped recovery, led by China.

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  1. ASEAN+3 Regional Economic Outlook 2020
  2. Release of second quarter 2020 Economic Survey of Singapore

  3. MTI Downgrades 2020 GDP Growth Forecast to “-7.0 to -4.0 Per Cent”

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