Reuters, SINGAPORE, June 30 – Singapore’s economy could grow faster than the official expected range of 4% to 6% this year, according to central bank director Ravi Menon, citing stronger global demand and progress in the city-COVID-19 state’s vaccination program. “This year is a battle between the virus and the vaccination,” the managing director of the Monetary Authority of Singapore (MAS) said during a news conference on Wednesday to announce the release of the annual report. According to Menon, the Singapore economy recovered its aggregate output loss during the pandemic in the first quarter of 2021. He noted that the larger economy should rebound in the second half. In May, the Singapore government reaffirmed its official prediction for 2021 at 4% to 6%, following local limitations imposed in response to an increase in COVID-19 cases. In August, the forecast will be updated. Last year, the COVID-19 epidemic caused the greatest recession in the country’s history. Because international trade outweighs its local economy, the city-state is frequently regarded as a barometer for world growth. The advent of more contagious or lethal virus mutations, as well as a sudden increase in inflation in the United States, are among the downside possibilities, according to Menon. At its most recent meeting in April, the central bank maintained its lenient monetary policy. In mid-October, the next policy review is due. For the time being, Menon believes the policy posture is appropriate. Singapore private property prices have climbed for four quarters in a row, with the market rising 3.3 percent in January-March, the most in nearly three years, stoking market anticipation that the government may interfere shortly. According to Menon, the housing market has been “remarkably resilient” in the face of a recession last year and ongoing uncertainties. Authorities were extremely concerned about a continuous rise in housing prices relative to income patterns, and their goal was to ensure that the market did not outstrip economic realities, according to Menon. He did say, though, that the market was not now overheated. The central bank also raised its headline inflation prediction for 2021 from 0.5 percent to 1.5 percent to 1.0 percent to 2.0 percent. It left the core inflation forecast of 0% to 1% unchanged. Aradhana Aravindan and Anshuman Daga in Singapore contributed to this report.
Ed Davies did the editing.
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