Singapore's economy grew at a much faster rate in the first quarter of this year, surpassing earlier estimates by both the government and most market observers, Channel News Asia reported Tuesday.
Singapore stuck to its growth projection at a range of 4 to 6% this year, in view of heightened uncertainties arising from the ongoing global health crisis, according to the Ministry of Trade and Industry.
The country's January-March economic advance was even higher compared to the 0.9% growth estimated by economists in a Reuters survey.
Singapore's surprisingly robust performance in the first quarter and its confidence over strong demand for exports are likely to cushion the risk from the recent tightening of local pandemic prohibitions and border controls.
"The broader economy should still see a recovery this year in tandem with the global economic rebound and further progress in the domestic vaccination program," MTI said in a statement.
The city-state's gross domestic product rose by 1.3% year on year between January and March, fueled by gains in the finance, manufacturing, insurance and wholesale trade sectors.
Singapore tightened its health protocols earlier this month to contain a sudden surge in local community cases of COVID-19. Its heightened alert restrictions (Phase 2) that will remain in effect until middle of June have raised concerns over its full-year growth target.
At a briefing Tuesday, Edward Robinson, Singapore central bank deputy managing director, said the Monetary Authority of Singapore is "completely aligned" with the MTI's economic forecast, according to Bloomberg.
Singapore's growth in the information and communications sector rallied to 6.4% year on year, from the 2.6% achieved in the previous quarter.
However, the construction sector narrowed by 22.7% and the storage and transportation sectors contracted by 16.5%, compared with the same period last year. The food and beverage service sector shrank by 9.4% year on year, The Straits Times said.
Meanwhile, while Singapore's economic rebound may be "interrupted" by new restrictions, "the silver lining though is that the economy has adapted to a re-institution of mobility, social and activity restrictions," Vishnu Varathan, director of economics and strategy at Mizuho Bank Ltd. in Singapore, said in remarks quoted by Bloomberg.
