In the first quarter of 2022 Singapore’s economy showed promising growth, way more than was previously estimated. However, the annual GDP will stay in the lower half of the government’s forecast range due to the Ukraine war and strict COVID-19 measures in China which would cause supply chain disruptions. The GDP growth in the first quarter was 3.7% against the estimated 3.4%.
According to Gabriel Lim, permanent secretary for trade and industry, “The external economic environment has unfortunately deteriorated. Stringent measures implemented in China to contain its domestic COVID-19 outbreaks are likely to weigh on its economy and contribute to global supply bottlenecks.”
Singapore also maintained its inflation guidance which suggested that core inflation – the central bank’s favored price measure could peak around 4% in the third quarter, before moderating in late 2022.
(Source: Business Standard)