The Singapore economy for the fourth quarter added around 3% to the GDP of the country. This is widely considered a positive growth as the world is currently preparing for another potential pandemic. Singapore records such a growth just as the new variants of the virus are spreading at a faster rate pushing countries into a lockdown.
The Growth of Singapore’s Q4 Economy
The country opened its account in 2022 with a positive note as the first week in the market looks pretty solid. The reason for the grand opening is thankful for the bullish trend the Singapore economy faced in the fourth and final quarter of 2021. The results of Singapore’s Q4 economy far outgrew the predictions camping at 5.4% by recording a 5.9% year-over-year growth. This impressive feat is catching the eyes of people around the world amidst growing fear of new variants of the coronavirus.
Performance in 2021 and Predictions for 2022
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Despite restarting after the pandemic in 2020, the island country posted a staggering 7.2% growth in its economy. Surprisingly, the post-pandemic year recorded the highest growth rate since 2010. It proves that the last year did not just recuperate Singapore but made it one of the fastest-growing economies since COVID-19. However, the government forecasts expect the GDP to leap 3-5% in 2022. The reason stated for the expected downflow is the increasing spread of new variants of the virus that shut the world in 2020. Despite being one of the countries with a braggable vaccination rate, the unpredictability of the new variants still could worry the country’s economy.
The Singapore Dollar in the Bullish Market
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As soon as the records of GDP reached the hands of the investors, the Singapore dollar entered a bullish market, and the surprising performance of the economy was reason enough for such excitement. Nonetheless, the USD/SGD pair has seen bearish sentiment in the market for a moment. But it was not enough to drag the pair of currency back to the bottom as they bounced back with much fierceness soon after. Currently, the Singapore dollar is trading at $1.35 against $1 of the US dollar.
