Singapore household spending expected to grow by 3.1% in 2022

This would mean a total of $148.4b household spending.

In a report released by Fitch Solutions Singapore, household spending is forecasted to jump by 3.1% in 2022 to hit $148.4b. This is an effect of the company’s prediction that the country’s economy will grow by a real rate of 4% over 2022. 

Unemployment is also expected to decline to 2.2%, which would positively influence the income outlook. 

Economic growth in 2022 is seen to be underpinned as the Vaccinated Travel Lanes Scheme brings in more tourists. This is expected to increase by 159.6% over the year. 

The report also said that the consumer price inflation increase of 2.5% year-on-year (YoY) in July 2021 was also the most that Singapore has had in the past seven years. This, however, was boosted by the low base effects of May 2020, as the company believes that inflation will begin to ease in the second half of 2021 to an average of 1.6% YoY over 2021, and 1.7% over 2022. 

Meanwhile, the global semiconductor shortage is also expected to continue into 2022, which would put pressure on the supply of several consumer goods. This is expected to bleed into more consumer services over 2022.