The ministry said in a press release that GDP growth in most advanced economies is expected to moderate next year as compared to 2021 but remain above pre-COVID trend rates.
By contrast, key Southeast Asian economies are projected to see faster growth in 2022 as they progressively resume more economic activities. Meanwhile, supply bottlenecks and disruptions could continue to weigh on industrial production in some external economies in the near term.
Domestically, Singapore's high vaccination rate and steady rollout of booster shots will continue to facilitate the progressive easing of domestic and border restrictions, which will support the recovery of consumer-facing sectors and alleviate labor shortages in sectors that are reliant on migrant workers.
Air travel and visitor arrivals are also expected to improve with the loosening of travel restrictions and the expansion of Vaccinated Travel Lanes, the ministry added.
The MTI also announced that Singapore's economy grew by 7.1 percent year on year in the third quarter of 2021, slower than the 15.2 percent expansion recorded in the previous quarter. This brought GDP growth in the first three quarters of 2021 to 7.7 percent. On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 1.3 percent in the third quarter, a turnaround from the 1.4 percent contraction in the second quarter.
Taking into account the performance of the Singapore economy in the first three quarters of this year, as well as the latest external and domestic developments, the MTI adjusted the 2021 GDP growth forecast for Singapore to around 7 percent from 6-7 percent.