Singapore’s GDP growth in the second quarter of 2022 unchanged from the previous quarter

International Business News  –  On July 14, Singapore’s economy grew less than expected in the second quarter of 2022, according to government statistics, reflecting a decline in domestic and global demand for basic necessities and services amid rising inflation.

According to a notice from the Ministry of Industry and Trade (MTI), Singapore’s gross domestic product (GDP) grew by 4.8% year-on-year in the second quarter, lower than the market’s target of 5.4% growth. On a seasonally adjusted basis, second-quarter GDP was unchanged from the previous quarter.

On July 14, MTI raised its growth rate for the first quarter of 2022 to 4% from its previous forecast of 3.7%, due to improvements in construction and services.

In April 2022, MTI maintained its forecast for Singapore’s economic growth of 3%-5% this year, but warned that due to the conflict between Russia and Ukraine and China’s epidemic prevention and control policies, Singapore’s economic growth may be slightly lower than the forecast level.

On the same day, the Monetary Authority of Singapore (MAS) tightened policy to make room for the Singapore dollar (SGD) to appreciate to counter the impact of rising prices.

In the near term, the MAS forecast core inflation could be above 4%, up from its previous forecast of a target of 2.5% to 3.5%.

This is the fourth time MAS has tightened policy since October 2021 and the second since January 2022.

MAS believes that Singapore’s economic situation is still improving, albeit at a slower pace.

Statistics from MTI show that in the second quarter of 2022, Singapore’s manufacturing industry grew by 8% year-on-year, slightly higher than the 7.9% increase in the previous quarter. Construction grew 3.8% year-on-year, up from 1.8% growth in the first quarter of 2022.