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Although the COVID-19 pandemic is linked to global uncertainty, unemployment, high debt and economic hardship, Singapore’s small and still isolated city-state is doing quite well.
So much so, in fact, that 2021 was a record year for the country in many areas, proving its remarkable resilience. Here is a review of his most notable accomplishments:
Record trading
As the world continued to rebound after the gloomy 2020, a large wave of global demand for economic goods for Singapore’s trade was lifted. This has led to a record number of exports and imports, which grew by almost 20 per cent more than in 2020 and 10 per cent more than the highest in 2018, totaling S $ 1.16 trillion.
Not surprisingly, it has managed the Port of Singapore as a result A record 37.5 million containersFor the fifth year in a row, Singapore has helped to maintain its position as the World’s Leading Maritime City, according to the Norwegian rating company, DNV and the Norwegian consultancy Menon Economics AS.
Essentially, all trade categories have risen, including non-oil domestic exports, both electronic and non-electronic. The first is particularly interesting given the global shortage of chips and the resulting announced investments in the city to meet the bursting demand.
After about 15 years of relative stability, the pandemic has risen by about 50 percent, reaching $ 16 billion in December 2021 alone.
Singapore is not only a transshipment site, it is also a manufactory, and it pours foreign investment into the country, despite closing borders.
(Almost) investment record
Speaking of investments, it was 2021 great yearFollowing a 2020 explosion, it set a record S $ 17.2 billion despite a raging pandemic in the city-state.
2021 may seem to be lagging behind S $ 11.8 billion, but the average for the annual Economic Development Council target is still between S $ 8 and 10 billion.
The most lucrative industries were electronics ($ 5 billion) and biomedical manufacturing ($ 1.8 billion).
More than 67 percent of the money came from the U.S., followed by Europe with 13 percent, which means the West is responsible for 80 percent of the expected cost of creating 17,000 PMET jobs that are good support in the next five years.
Record bookings
Like me reported during the yearBoth Temas and GIC provided historic results, driven by stock market rallies (especially in America).
Given Singapore’s reputation for stability and confidence, money moved rapidly, increasing SGD demand, and the Singapore Monetary Authority set a record S $ 566 billion in foreign reserves.
With more than 110 percent of the country’s GDP, it would be a waste not to use more than 65 to 75 percent of the funds to make a profitable investment. As a result, it’s horrible S $ 185 billion will be transferred to the GIC in installmentsadding S $ 250 billion that the fund has earned by March 2021.
This is likely to manage the GIC’s assets (which can be roughly estimated to be non-public) from S $ 1 trillion to S $ 1.2 trillion in 2022, although the current bear market of stocks will erode some of its portfolio value.
Net International Investment Position Record
A rarely mentioned figure, however, a fairly significant figure in the country’s economic situation is the International Net Investment Position (NIIP).
It is just the difference between all the public and private foreign liabilities and assets of the country to decide whether the nation is a net debtor (that is, borrows more than it owes from the world) or a net creditor (which lends and invests abroad).
As of 2021, Singapore has a surplus of foreign assets of around S $ 1.5 trillion or US $ 1.1 trillion in liabilities (by comparison, China as a whole has a surplus of around S $ 2 trillion). Kong (his role, however, is waning in the pandemic and for political reasons).
Record of the arrival of foreigners
Unfortunately, not all records are positive, of course.
As the border closures remain in place, Singapore was visited by a meager 300,000 people in 2021, the lowest recorded, leaving only $ 1.9 billion compared to 19 million visitors and $ 27 billion was charged in 2019.
In total, the tourism sector (and, by extension, the economy as a whole) has lost about $ 50 billion in the last two years due to the lack of foreign arrivals.
Therefore, it is quite obvious that the country has registered one …
GDP record
Fortunately, we can end this list on a positive note. Although we are still waiting for the final figures, real growth at 7.2 per cent – the highest figure in a decade – should land more than S $ 510 billion of GDP recorded in 2019 at current prices.
You might think “so all countries are going to have very big rebounds in 2021 after the 2020 recession” – and that’s true.
But Singapore is not like all countries, it depends on its openness to the world. Unfortunately, since the spring of 2020, it has been relatively closed and has lost approximately 200,000 people from its 5.7 million inhabitants – both low-level and high-level workers who are victims of the pandemic.
With the decimated tourism that has lost tens of billions of dollars in the last two years and the disappearance of hundreds of thousands of people, there should still be a marked decline in GDP, and yet it is hard to find.
Not only is the economy back on track, it is likely that it has already reached its pre-2019 pandemic level – all while the borders were almost completely closed during 2021.
And not only in statistics, but also in local wages – they have surpassed inflation, rising to a median of S $ 4,680 and surpassing S $ 4,800 in 2022. $ 5,000 in $ 2023.
With the resumption of intercontinental travel in 2022, the Omicron variant seems to be considerably more dangerous, even more infectious, but Singapore should get the necessary boost from foreign visitors and their money, raising the economy even higher.
To top it all off, we need to remember that unlike in every other country in the world, small city-states should not borrow money to boost their economy, but rather get their hands on large reserves, barely leaving. violated (especially because their overall value grew much more than what the government should have used).
Two years later, it is now clear that Singapore is not only a country prepared for this pandemic, but also one of the biggest winners as the world draws to a close.
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Featured Image Credit: @shawnanggg via Unsplash
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