Singapore's economic growth in the second quarter exceeded initial estimates, and the government has raised its growth forecast for the full year 2021 as Covid-19 vaccinations at home and abroad proceed, according to Reuters.

Singapore's Ministry of Trade and Industry said it now expects 6-7 percent GDP growth in 2021, compared with previous estimates of 4-6 percent growth.

Gross domestic product (GDP) rose 14.7 percent in the second quarter from a year earlier, up from an initial reading of 14.3 percent.

In absolute terms, GDP remained 0.6% below the pre-epidemic level of the second quarter of 2019.

On a seasonally adjusted basis, the economy contracted 1.8% in the second quarter from the previous quarter, after expanding 3.3% in the last quarter.

"Barring a major setback in the global economy, Singapore's economy is expected to continue its gradual recovery in the second half of the year, supported in large part by outward-looking sectors," said Gabriel Lim, permanent secretary at the Ministry of Trade and Industry.

Lim also stated that easing border restrictions would also help recover consumer-oriented industries and alleviate labor shortages in industries that rely on migrant workers.

However, aviation and tourism-related industries are expected to recover more slowly than previously expected. Even by the end of this year, these activities will still be significantly lower than the pre-epidemic level.

Singapore recorded its worst-ever recession last year due to the epidemic's impact, and the recovery has been uneven. Much of the rapid economic growth this year is due to a low base last year when the epidemic crippled the global economy.