The first quarter of 2021 saw strong GDP growth from Singapore, outperforming government expectations.<\/p>\n\n\n\n
Q1\u2019s 1.4% year-on-year growth was the best since 2019 Q4, far better than the Ministry of Trade and Industry\u2019s own cautious forecast of 0.2%, and exceeding more optimistic projections from a Reuters analysts\u2019 poll (0.9%).<\/p>\n\n\n\n
GDP was also up by 3.1% on the previous quarter, exceeding the government\u2019s earlier estimates of 2%, setting the island nation on track for a very healthy 2021, following an understandably tough 2020.<\/p>\n\n\n\n
SINGAPURE\u00b4S GROWTH ENGINE<\/strong><\/p>\n\n\n\n So, what was behind these strong figures?\u00a0 Primarily exports of goods.<\/p>\n\n\n\n Being a small nation, Singapore has a small domestic market, but she\u2019s also a mini export powerhouse, with a remarkable exports\/GDP ratio of 1.7 according to World Ban figures, one of the highest in the world, and is also ranked 2nd overall in their Ease of Doing Business ratings.<\/p>\n\n\n\n In Q1 2021, YoY:<\/p>\n\n\n\n <\/p>\n\n\n\n It\u2019s capital goods (machinery, production equipment) that dominate Singapore\u2019s exports, accounting for almost a half of the total value \u2013 as much as commodities, consumer goods and intermediate goods combined.\u00a0 And Singapore\u2019s ability to sell to a range of markets in the region is a strength too: China, Hong Kong, Indonesia and Malaysia are her top 4 export destinations, combining to contributing 43% of total export value, but they each account for between 12% and 8%, with no overreliance on a particular market.<\/p>\n\n\n\n\n
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