The 2021 second quarter economic growth for Singapore was the strongest in 11 years as the economy the city state rebounded from its worst economic downturn last year because of the Covid-19 pandemic hit.
There was a 14.3 per cent growth reported for the Southeast Asian economy for the second quarter of the current year, according to advance estimates by the Ministry of Trade and Industry of Singapore. The second quarter performance also beat analysts’ estimates of a 14.2 per cent year on year growth for the second quarter.
“The strong growth was largely due to the low base in the second quarter of 2020 when GDP fell by 13.3 per cent due to the Circuit Breaker (CB) measures implemented from 7 April to 1 June 2020,” the ministry said in a Wednesday statement.
The partial lockdowns imposed by authorities in Singapore to curb the spread of the Covid-19 pandemic when the government shut down large parts of the economy is referred to as the circuit breaker.
Despite reporting a year on year growth, the economic expansion of the second quarter was 2 per cent less compared to the previous quarter, the ministry said.
For the April to June quarter, the gross domestic product of Singapore in absolute terms was 0.9 per cent lower than the same period of 2019 when the Covid-19 pandemic had not hit, the ministry added.
During the second quarter, there was a 22.2 per cent year on year growth in the goods producing industries but contracted by 2.5 per cent compared with the first quarter. The authorities also reported a 9.8 per cent year on year growth in the services sector but actually contracted on a quarter on quarter basis. Singapore’s crucial manufacturing sector also grew by 18.5 per cent year on year in the second quarter but also contracted by 1.8 per cent on a quarter on quarter basis.
There was resurgence in Covid-19 vases in Singapore this year which prompted the government to once again impose restrictions and social distancing measures in early-May and had gradually began to lift and ease those restrictions only last month as the number of local infections got reduced.
According to data from Singapore’s health ministry, there has been more than 62,700 cases of the coronavirus and 36 deaths as of Tuesday since the beginning of last year when the Covid-19 pandemic first hit the country.
One of the positives for this Southeast Asian country is its rate of vaccination which is amongst the highest in the world. So far, the country has administered at least one dose of a Covid-19 vaccine to more than 70 per cent of its roughly 5.69 million population while more than 41 per cent of its population has been completely vaccinated, according to data form the country’s health ministry.
(Adapted from CNBC.com)