SINGAPORE, March 7 (dpa): Singapore's economy is recovering steadily from pandemic-related lockdowns, according to a February survey of around 400 factory managers in the wealthy city-state.
Manufacturers reported "substantial growth in output and new order volumes," according to IHS Markit's purchasing managers index (PMI), with firms recruiting to try to keep pace with increased demand.
Shreeya Patel, an economist at IHS Markit, said that the February data suggested "a strong improvement across Singapore's private sector with robust expansions recorded in output and new orders."
The manufacturing jump comes after Singapore's gross domestic product (GDP) grew 3.8 per cent quarter-on-quarter during the final three months of 2020 and after the Trade Ministry reported exports grew 12.8 per cent in January.
But lockdowns in key markets in Europe and North America, as well as the collapse of international travel, have slowed Singapore's revival, contributing to GDP shrinking by a record 5.4 per cent overall last year.
Much of the damage was done during an April-June lockdown that saw Singapore's economy contract by more than 13 per cent during the second quarter.
Growth returned later in the year as Singapore largely reopened domestically, with export-oriented electronics, pharmaceuticals and medical production sectors mostly expanding due to demand driven by the pandemic and lockdowns elsewhere.
Singapore's small domestic market leaves it economically dependent on trade with and investment from overseas, with the World Bank in 2019 estimating Singapore's trade-GDP ratio at around 300 per cent.
