Singapore’s Economic Performance for Q3 2021 and Forecast for 2022

Singapore Economic Performance

Despite the setback during the first two quarters of this year, Singapore is seeing rapid growth during the third and fourth quarters of 2021. This growth momentum is expected to continue to 2022 as infection decreases and the vaccination rate increases globally.

Based on this year’s performance and the unexpected reimplementation of restrictions in July, economists estimate a GDP growth rate of only 4-5% in 2022 compared to this year’s 6-7%. Despite this, however, they remain optimistic about the performance of the economy in general.

While some industries continue to suffer, others have surpassed pre-pandemic performance. To get a better understanding of how Singapore has fared this year, take a look at each industry’s performance during the third quarter.

Trade and Manufacturing Services

Based on last year’s Q3 performance, the trade and manufacturing industries have grown 7.5% during the third quarter of 2021. However, compared to last quarter’s, the said industries have experienced 18% growth due to the increased output production. Moreover, as the consumer demands for new products continue to rise, the forecast for these industries continues to remain positive.

Construction Industry

Compared to last year’s performance, the construction sector has expanded by 57.9% this third quarter. Moreover, in relation to the previous quarter’s performance, the construction sector has seen a whopping 117.5% growth due to the resurgence of construction activities after the Circuit Breaker period in the past year.

Regardless of this growth, the industry is still 25.1% below its pre-pandemic performance. This can be attributed to labour shortages brought about by border restrictions. The border restrictions have limited the number of migrant workers to enter the country, thereby cutting the construction industry’s performance short.

Information, Communication, Insurance, and Finance

As existing companies continue to navigate the current economic landscape and new companies continue to emerge, Singapore accounting services and communications and information services remain in demand.

Based on the performance, these professional service sectors have expanded by 7.7% compared to last year’s third-quarter performance. Similarly, they have seen a 10.1% growth compared to the previous quarter, with all sectors reportedly having significant expansions.

Labour Market

Much like the previous industries, the labour market is also slowly improving as unemployment rates continue to drop. However, despite this optimistic outlook, domestic income is still quite low as inflation rates surge.

The Monetary Authority of Singapore (MAS) has projected a 2.6% global inflation rate this year and expects to see a 2.4% inflation rate in 2022. In Singapore, MAS projects the inflation outlook to remain steady, ranging from 0 to 1%, which can increase up to 2% in 2022.

The changes in inflation are brought about by the increased prices of commodities and other manufacturing goods. For instance, energy and food commodities have risen, and prices are expected to remain elevated in the near future as the global supply and demand remain mismatched. So, to provide enough means for the locals, companies are required to increase basic wages.

Travel, Tourism, and Hospitality

Unlike the positive outlook of the other industries, travel, tourism, and hospitality continue to lag, achieving only 50% of its pre-pandemic performance output, according to the Monetary Authority of Singapore. Ongoing travel restrictions are still in place, as well as domestic restrictions to prevent the continuous spread of the virus.

Even if the restrictions loosen in the coming years, it will take time before Singapore can reach pre-pandemic performance for the tourism sector.

Accommodations and Food Sectors

The same goes for the accommodation and food sectors in the country. As the country reopens once more, these sectors have seen growth, but it is still not enough to match pre-pandemic levels.

In fact, the accommodation and food services sector has seen a 3.1% growth compared to last year’s third-quarter performance. But still, the performance is considered insufficient to match the other industries. The weak performance of these sectors was primarily due to continuous domestic restrictions—more specifically, the limitations in dining-in group size.

Because of this, the overall performance is still 11.3% below pre-pandemic levels during the third quarter of 2019.


As the year comes to an end, experts are continually monitoring economic performance to see the potential impact for the coming years. Accounting firms in Singapore are taking efforts to keep themselves updated in order to help guide companies in the right direction.

If you want to maximise the country’s current economic performance, hire accounting services in Singapore like Corporate Services Singapore to help your business thrive.

Posted in Accounting.