Insight - Can the turbocharged 2Q GDP be sustained?

Lee Heng Guie SERC

WITH the reopening of the economy and international borders amid transitioning into an endemic phase, robust domestic demand, especially private consumption and continued exports, have delivered an exceptional 8.9% year-on-year (y-o-y) real gross domestic product (GDP) in the second quarter of 2022 (2Q22) (5% in 1Q22).

On a monthly compilation, real GDP grew by 5.6% y-o-y in April, 5% y-o-y in May before expanding robustly by 16.5% y-o-y in June, largely boosted by a low base effect in June 2021 as a result of the implications of the movement control orders.