Singapore on the road to recovery in 2021: research

This is despite some sectors continuing to be held back by pandemic measures.

Singapore’s gross domestic product contracted by 5.4% in 2020 but recovery may soon be felt with GDP expected to expand by 5.2%, according to Standard Chartered.

Standard Chartered’s research found that on an expenditure basis, private consumption—mainly in transport and recreation-related spending—subtracted 5.3ppt from growth. Both public and private investment fell as construction works were affected by the pandemic.

This was mitigated by government spending and net exports. According to government estimates, fiscal support offset the contraction, adding 5.5ppt to 2020 growth.

The research also said that although economic activity in some sectors like air transport, retail trade, and food and beverage services may remain below pre-pandemic levels this year, manufacturing, finance and insurance, infocomm, and wholesale trade have reverted back to Q4-2019 levels that may support overall growth recovery in this year.