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Budget 2022: S’pore economy expected to grow by 3 to 5 per cent this year

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Finance Minister Lawrence Wong delivered his maiden Budget speech today (February 18). He said that Singapore’s economy has rebounded strongly from its worst recession since independence.

Close to $100 billion over the past two years was committed to support Singaporeans and businesses through the uncertainties of Covid-19.

The close tripartite relationship between the unions, employers and the Government also allowed decisive and timely actions to preserve jobs and create new ones, even through the crisis.

As a result, the resident unemployment rate has dropped to 3.2 per cent, close to pre-pandemic levels.

The median income of full-time employed residents grew by around one per cent in real terms last year, after a decline of 0.4 per cent.

Although Singapore will continue to benefit from the pick-up in the global economy, 2022 is not free of risks, he warned. The global economy is still vulnerable to pandemic-related risks and further supply-chain disruptions.

A slowdown in external demand may also be seen as major economies scale back their pandemic support and central banks tighten their accommodative monetary policies to deal with the threat of inflation.

Barring fresh disruptions, the Singapore economy is expected to grow by three to five per cent this year.

Featured Image Credit: MEDICI Global

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