People enjoy the twilight view at Singapore's Marina Bay on Nov. 16, 2021. (Photo by Then Chih Wey/Xinhua)

Singapore's economy is expected to grow about 7 percent in 2021, at the top of the official forecast range, and will expand at a slower pace in 2022 as an uneven recovery continues across sectors, the government said on Wednesday.

The Ministry of Trade and Industry (MTI) forecast the economy to grow 3 to 5 percent in 2022.

"The recovery of the various sectors of the economy is expected to remain uneven in 2022," said Gabriel Lim, permanent secretary for trade and industry.

He expects outward-oriented sectors to remain strong, while activity in aviation- and tourism-related sectors would remain below pre-COVID-19 levels throughout 2022.

Singapore, which has fully vaccinated about 85 percent of its 5.45 million population, eased some COVID-19 safety measures this week and has opened quarantine-free travel lanes with several countries.

"Recovery has definitely started, the reopening borders and easing of mobility restrictions could help consumer facing sectors," Maybank Kim Eng economist Lee Ju Ye. "But it's still going to be a slow pace of normalization."

The MTI said protracted supply disruptions alongside a stronger pickup in demand, as well as rising energy commodity prices, could lead to more persistent inflation.

Reuters