Barclays expects GDP growth after lifting of Covid measures
SINGAPORE — Singapore is set to reopen its international bordersNext week, ease Covid restrictions and it will be “biggest economic catalyst for growth,” says Brian Tan, senior economist at Barclays.
According to our estimations, mobility in places such as workplaces and recreational areas will increase by only 10%. This would result in growth of 3%-4% of GDP. Tan stated this on CNBC’s Street Signs Asia on Friday.
On March 29, social gatherings will no longer be limited to five people. Singapore’s Prime Minister Lee Hsien Loong said Thursday that more employees can return to work and the capacity limit for large events will increase.
“We’re also expecting that the resumption of international travel … there’s a gap of about 4% of GDP that could potentially be filled,” Tan added.
Expedia conducted a survey with 12,000 travellers and found that Singaporeans were least likely (59%) to have traveled in the aftermath of the pandemic, while those who did travel to Singapore (43%) wanted to spend more on their next vacation.
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But, this growth also comes with domestic inflation pressures and a tight labor market. Markt and rising global commodity prices.
Referring to Singapore’s central banking institution, the analyst said that “That’s going be set the scene for the Monetary Authority of Singapore (MAS) to implement quite aggressive policy tightenings in April.”
Capital Economics’ analysts and DBS Bank’s bank analyst also indicated that Friday was a day when they expected MAS policy to be tightened at its next meeting after the restriction listing.
Tan stated, “We believe that it is going to have a positive effect on the currency.”
It Singapore dollarThe greenback was traded at $1.356 Singapore Dollars. The benchmark index for Singapore, the Straits Times’ IndexOn Friday, 0.5% was higher, just a day following a slew announcements about easing measures.
Non-fully vaccinated children 12 years and younger can enter Singapore, provided they are fully vaccinated.
Tan said that the “good macroeconomic outlook” will be possible in Singapore by opening up borders, which would help attract foreign direct investment.
“The fact we can reopen before some other Asian economies also indicates that Singapore is a safe haven.”