When the Covid-19 pandemic occurred, many countries around the world experienced destruction, including economically due to various factors.
Starting from social distancing policies to lockdowns, several sectors also experienced a decline in economic growth, a decline in public consumption, and pressure on the supply sector. Some of the sectors most affected include tourism, transportation, and retail due to mobility restrictions and the closure of various facilities.
However, one of the ASEAN countries in 2021 actually experienced an increase in the economy as a post-pandemic recovery such as Singapore. This country is one of the countries that recovered faster from the COVID-19 outbreak besides Denmark, the USA, Rwanda and New Zealand.
However, all of that is not free from all the obstacles that must be overcome even though they are difficult. Take a peek at how Singapore's economy journey during the pandemic and when economic growth has increased better.
Singapore's Economy Shrank on Quarter of 2020
In the second quarter of 2020, Singapore's economy shrank by 41.2%. This resulted from the effects of the COVID-19 pandemic and quarantine measures that restricted economic activities. Quoted on BBC
This decline was the most significant in Singapore's economic past. Multiple officials anticipate that this downturn will be Singapore's most severe recession since gaining independence from Malaysia in 1965.
Official figures reveal that Singapore's gross domestic product (GDP) declined by 12.6% in the second quarter of 2020 when compared to the same timeframe in the prior year.
These disappointing figures come after a decline in GDP, which contracted by 2.2% in the first quarter compared to the same period last year, and decreased by 10.6% in relation to the preceding quarter.
The drop in international trade had impacted Singapore's manufacturing sector, which relies heavily on exports, while the construction industry had slowed down, and retailers had experienced a rapid decline in sales.
Singapore's Economy Expanded on 2021
Illustration of Many SIngapores High Builing with Merlion Statue, marked of Singapore's economic recovery soars by 7.2 percent. Source : Unsplash
Singapore's economy expanded by 7.2 percent in 2021, signifying the lion nation's rebound from its deepest recession caused by the COVID-19 pandemic. The Singapore government's early restrictions on movement led to a decline in the country's economy quoted on CNN
The policy was subsequently modified when the government chose to recognize the outbreak as endemic since most of the population had received full vaccinations. As of now, Singapore has reported a total of 280,290 cases and 829 deaths on Sunday (2/1/21).
On Monday (3/1/21), Singapore's Ministry of Trade published its first estimate, forecasting a 5.9 percent annual growth for the economy in the fourth quarter of 2021.
Economic growth for the full year was 7.2 percent, recovering from a 5.4 percent decline the year before. Expansion was bolstered by a 12.8 percent increase in the manufacturing sector, a trade-reliant cornerstone of the economy. The increase in manufacturing was fueled by the worldwide need for semiconductors and semiconductor machinery.
Another area that aided growth was construction, which was projected to expand by 18.7 percent year-over-year. Despite the remarkable performance, Prime Minister Lee Hsien Loong stated in his New Year's message that Singapore is not in the clear yet. For him, the omicron variant continues to introduce new uncertainties.
Nevertheless, Singapore was better equipped to manage COVID-19 than it was two years ago, as booster vaccinations have been distributed and the inoculation of kids under 12 is in progress.
Nonetheless, Prime Minister Lee was hopeful about tackling any challenges ahead, including the omicron variant itself. Lee stated that Singapore's economy is projected to increase by 3-5 percent in that year.
The Way Singapore Mades Economic Growing Post-COVID-19
Singapore's Deputy Prime Minister and Finance Minister Heng Swee Keat stated that Singapore continues to be dedicated to the unrestricted movement of goods, services, capital, data, ideas, and talent. He shared his comments while describing three methods the Singapore Government is supporting businesses and employees to succeed in a post-COVID-19 environment. Quoted on medcom.id.
"In a more turbulent post-COVID world, no matter what occurs globally, we will continue to discover new connections to facilitate these movements, particularly in linking essential supply chains worldwide." "Singapore should consistently be an open trading country," he was reported as stating by Xinhua on Sunday, June 21, 2020.
He mentioned that Singapore should keep investing in infrastructure initiatives, even if it requires postponing certain projects.
Third, Singapore should keep investing in research and innovation to enhance its competitiveness. Heng declared that Singapore has completed its five-year R&D strategy, allocating approximately $14 billion to enhance fundamental and applied research in significant fields like health and biomedical sciences, climate change, and artificial intelligence.
