Asia Regional Integration Center

The economy rebounded in 2021, growing by 7.6% after the pandemic-induced 4.1% contraction in 2020. Manufacturing rose by 13.2%, while construction soared by 20.1%. Services expanded by 5.6% with all subsectors showing positive growth. Domestic demand grew by a robust 8.9% growth while investment had double-digit growth. Inflation rose to 2.3% in 2021 on higher food prices and transport costs. A 6.7% drop in exports and 7.7% contraction in imports (by value) allowed the trade surplus to widen to 29.8% of GDP in 2021. Monetary policy was tightened in October 2021, but the 3-month Singapore interbank rank remained stable at 0.4%. The budget deficit narrowed to 1.0% of GDP in fiscal year 2021 (FY2021, ending 31 March 2022), despite a largely accommodative fiscal policy. Economic growth is forecast to moderate to 4.3% in 2022 and 3.2% in 2023.