StanChart forecasts GDP growth to ease 4.1% in 2022

This is given the unfavourable base effect and the moderation of global growth and trade levels.

Despite the gross domestic product (GDP) showing signs of recovery from the previous year, Standard Chartered predicts that Singapore’s GDP growth will ease to 4.1% in 2022.

Previously, a GDP growth of 6.1% was recorded for 2021, faster than the advance print at 6.1% year-on-year. Meanwhile, full-year 2021 growth rose to 7.6%.

"However, we think headline GDP growth will ease in 2022 given the unfavourable base effect. Global growth and trade levels are likely to moderate from the strong performances in 2021. In addition, tighter monetary and fiscal policies (global and local), ongoing supply-side disruptions and rising inflation may slow growth momentum," Standard Chartered said in a report.

Regardless of this, Standard Chartered's prediction is still higher than its average 3.2% growth between 2015 to 2019.

"We think the central bank will increase the SGD NEER policy band slope by another 50bps again in April (see Singapore – Another 50bps move likely in April), with a risk that MAS moves beyond this neutral stance due to the continued rise in global oil prices."