Singapore’s Marina Bay Sands super mall is the largest and most luxurious shopping mall in Asia. Image Source: Ypa249834814 | Megapixl.com
Singapore, the Southeast Asian country, has finally emerged out of the recession, as its economy grew marginally by 0.2% in the quarter ended 31 March 2021.
This is for the first time in the past five quarters that Singapore’s economy hasn’t shrunk, on a year-on-year (Y-on-Y) basis.
Manufacturing Sector Drives the Economic Growth
The growth in the economy was driven by the manufacturing sector, which grew by 7.5% during the quarter.
With this, the country is officially out from the recessionary phase – when economy shrinks for two or more consecutive quarters.
On the sequential basis, the Singapore economy grew by 2%.
Graph denoting Singapore’s growth. Data Source: Singapore Government
Singapore, like many other countries, saw its worst economic year in 2020, when its Gross Domestic Product (GDP) shrunk by 5.4%, on the back of strict lockdown imposed, globally. Various nations across the globe have been issuing lockdown orders, in a bid to contain the highly contagious coronavirus.
Despite the encouraging numbers, the Singapore markets are in red. Strait Times Index, at the time of filing this copy, stood at 3,180.21, down 7.69 (-0.24%)
Monetary Policy Remains Unchanged
Separately on Wednesday, the Singapore's Central Bank -- Monetary Authority of Singapore – said that it has kept the monetary policy unchanged.
The central bank expects the economy to grow in the range of 4–6% this year.