SINGAPORE: Singapore’s Ministry of Trade and Industry (MTI) announced on Thursday that it has narrowed the gross domestic product (GDP) growth forecast for 2022 to 3-4 per cent from 3-5 per cent, reported Xinhua.

The adjustment was made taking into account the performance of the Singapore economy in the first half of 2022, as well as the latest global and domestic economic developments, the ministry said.

The ministry said that the Singapore economy grew by 4.4 per cent year on year in the second quarter of 2022, faster than the 3.8 per cent growth recorded in the previous quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy contracted slightly by 0.2 per cent, a reversal from the 0.8 per cent expansion in the first quarter.

It said that the external demand outlook for the Singapore economy has weakened compared to three months ago. At the same time, downside risks in the global economy remain significant. Against this backdrop, the outlook for some outward-oriented sectors in the Singapore economy has weakened.

Domestically, Singapore’s progressive removal of almost all of its domestic and border restrictions supported the recovery of segments of the Singapore economy that had been badly affected by the pandemic.

In particular, the strong recovery in air passengers and international visitor arrivals is expected to benefit aviation- and tourism-related sectors like the air transport sector, the arts, entertainment and recreation sector, and the consumer-facing sectors.

In addition, the easing of Singapore’s travel restrictions has bolstered the recovery of the professional services sector as firms in the sector can now better engage their overseas clients, the ministry added. - Bernama