Economists forecast 5.8% GDP in 2021

The economy is set to recover from 2020's recession.

The Lion City will rise again in 2021, according to a recent poll by the Monetary Authority of Singapore (MAS).

The GDP will expand by 5.8% in 2021, according to the 26 economists polled by MAS. This is higher than the 5.5% forecast from the December 2020 survey.

On inflation, the economists predict prices to pick up by 0.4% for the first quarter of the year, and by 0.9% for the full year of 2021.

For 2022, the economy is expected to grow by 3.8%, with a 1.1% inflation rate.

Driving these predictions are the expectations of an increase of corporate profits, private residential property prices and stable bond spreads.

On financial and lending market conditions, the economists expect an easing in global financial conditions, which in turn will reflect on local conditions.

On potential risks, the escalation of COVID-19, geopolitical tensions between the United States and China, and insufficient stimulus were cited as downside risks. On the other hand, COVID-19 containment as vaccine deployment continues, stronger manufacturing sector performance, potential re-opening of borders and stronger global growth were cited as upside risks.