Singapore’s economy, which has grown about 7% in 2021, will grow at a much slower pace next year as several sectors continue to recover from the crunch caused by Covid19. The Ministry of Trade and Industry (MTI) has forecast the economy to grow by 3% to 5% in 2022.
Gabriel Lim, permanent secretary for trade and industry said in a statement that the recovery of the various sectors is expected to remain uneven in 2022. Lim feels that sectors like manufacturing and wholesale trade will run well, while aviation and tourism sectors will continue to face challenges.
Singapore has fully vaccinated 85% of its 5.45 million population, while also easing some Covid19 restrictions, including quarantine-free travel. But the recovery is still expected to remain slow all through next year. In 2020, the economy sunk by 5.4% due to the pandemic, but much of what was lost was recovered this year.
The World Economic Forum has ranked Singapore’s economy as the most open in the world. The economy is primarily driven by exports in electronics manufacturing and tourism. The financial service industry is another major contribution to Singapore’s GDP, with the country being home to over 200 banks.