Singapore’s economy rebounded on decisive policy action, but challenges lie ahead

SINGAPORE’S impressive recovery from the pandemic is outperforming similar economies, with total output exceeding pre-crisis levels last year, but the rebound has also been uneven.

Decisive policy responses, like the Jobs Support Scheme, helped minimise economic scarring, while rapid vaccinations and long-standing robust economic fundamentals helped Singapore navigate global challenges. However, sectors like tourism, aviation, construction and in-person services are still lagging.

Now, the war in Ukraine is confronting global policymakers with new challenges and uncertainty as Russia’s invasion and resulting sanctions raise risks for slower growth and faster inflation.