Reuters reports that Singapore's bellwether economy expanded more than initially estimated in the second quarter and the government raised its forecast for 2021.

GDP is forecast to grow 6% to 7% in 2021, versus a prior estimate for an expansion of 4 to 6%, the Ministry of Trade and Industry said.

GDP grew 14.7% year-on-year in the second quarter, higher than the 14.3% growth seen in the government's advance estimate. In absolute terms, GDP remained 0.6% below its pre-pandemic level in the second quarter of 2019.

"Barring a major setback in the global economy, the Singapore economy is expected to continue to see a gradual recovery in the second half of the year, supported in large part by outward-oriented sectors," said Gabriel Lim, permanent secretary for trade and industry.

He said easing border restrictions would also help in the recovery of consumer-facing sectors and alleviate labour shortages in sectors that are reliant on migrant workers.