Container loading and unloading at Pasir Panjang port of Singapore (Photo: VNA)The country’s economy expanded 1.3 percent in the firstquarter of this year despite earlier forecast of a 1.1 percentcontraction.
Survey respondents expected the economy to increase 15 percent year on year inthe second quarter, a robust jump off Singapore’s worst-ever quarter on record lastyear when GDP plunged 13.2 percent.
The forecast for the country’s GDP growth nextyear has also been raised to 4 percent from 3.8 percent in the March survey,reported The Straits Times.
Effective containment of the COVID-19 outbreak was the mostimportant factor that prompts the economists raising their growth outlook forSingapore.
They also cited the stronger-than-expected manufacturing sectorperformance, driven in part by robust global demand for electronics, as a bigupside factor. The prospect of reopening borders to international travel couldalso be a boon to the economy.
At the same time, deterioration in the pandemic situation andtighter public health measures as a result was the top downside risk to thegrowth outlook.
The economists polled were also concerned about geopoliticalrisks, including those stemming from US-China tensions, and aslower-than-expected labour market recovery, which could weigh on privateconsumption./.
VNA
