Singapore's economy will likely grow at a faster pace this year than previously expected as higher construction, finance and insurance activity outweighs sluggish accommodation and food services business, a central bank survey showed Wednesday.
Gross domestic product growth is expected at 6.9%, according to the median projection of external professional forecasters in the Monetary Authority of Singapore's December survey. That compares with the 6.6% forecast made in MAS's September survey.
In 2022, forecasters expect economic growth to moderate to 4.0%.
Economists raised their 2021 construction-sector growth forecast to 21.0% from 16.6%, and raised their estimate for finance and insurance activity growth to 7.5% from 6.8%. They maintained a forecast for 11.4% growth in manufacturing and lowered expectations for accommodation and food services growth to 3.1% from 5.9%.
They also raised the 2021 forecast for non-oil domestic exports growth to 10.9% from 9.0%. Exports growth is expected at 4.8% for next year.
All-items CPI growth this year was projected at 2.1%, up from the 1.7% forecast previously. For 2022, forecasters expect a 2.1% rise.
The projection for 2021 core CPI growth was increased to 0.9% from 0.7%, with 2022 core CPI growth tipped at 1.8%.
Forecasters expect a U.S. dollar-Singapore dollar exchange rate of 1.350 for end-2021, up from the 1.330 projected in the September survey.
The most-cited risks to growth included a "further deterioration in the Covid-19 situation, and an associated re-tightening in public health measures," according to the survey.
"The prospect of re-opening borders to international travel again emerged as the most frequently cited upside risk to Singapore's growth outlook," the MAS survey said.
The MAS said 22 economists and analysts responded to the latest quarterly survey. It noted that results don't represent the central bank's own views or forecasts.
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