S'pore economy beats estimates to expand 7.6% last year

Growth last year beat official estimates while the economic downturn amid the pandemic in 2020 was not as gloomy as initially feared, the Ministry of Trade and Industry (MTI) noted yesterday.

Expansion came in at 7.6 per cent last year, up from the estimate of 7.2 per cent, while the 2020 growth figure was revised from an earlier estimate of minus 5.4 per cent to a contraction of 4.1 per cent.

This was after more comprehensive data from surveys showed better performance from sectors such as services, wholesale trade, transport and storage, and information and communications.

The higher 2021 growth number came on the back of a stronger fourth quarter, with expansion of 6.1 per cent in the three months to Dec 31 over the same three months in 2020.

This pipped the 5.9 per cent growth estimated previously .

Mr Gabriel Lim, Permanent Secretary for Trade and Industry, said at a briefing yesterday: "GDP growth in 2021 was mainly driven by the manufacturing, finance and insurance, and wholesale trade sectors."

A separate MTI statement noted that the manufacturing sector grew by 13.2 per cent last year, accelerating from the 7.5 per cent growth in 2020.

Output across all manufacturing clusters rose, with the precision engineering, electronics and transport engineering segments registering the largest output increases.

The construction sector expanded by 20.1 per cent, a turnaround from the 38.4 per cent contraction in 2020, supported by both public and private sector building work.

The services producing industries grew by 5.6 per cent, a reversal from the 5.1 per cent contraction in 2020.

All services sectors posted expansions, with the exception of the administrative and support services segment.

UOB Group economist Barnabas Gan said the manufacturing sector provided the lion's share of the recovery last year, noting that the industry has now expanded for six consecutive quarters.

"The manufacturing sector is expected to underpin growth, given the growing demand for semiconductors and its related products, which will support further strength in Singapore's electronics and precision engineering clusters," he said.

Moreover, tourism-related clusters will likely see further recovery as many economies embark on reopening their respective borders on the back of the growing vaccination rates, he added.