This will be boosted by recreation and culture spending.
BMI Research reported a forecast of 6.5% increase in Singapore’s total household spending every year between 2018 to 2022, rising from US$$124.4b in 2018 to US$174.5b in 2022.
58% of total spending will come from non-essential spending, which is highly due to the increasing levels of disposable income, with average household disposable income estimated to rise from US$100,392 in 2018 to US$122,300 in 2022, BMI Research said.
According to BMI Research, non-essential spending will be boosted by recreation and culture, growing an average of 8.2% annually, with up to US$23.5b total spending, until 2022. This is highly driven by consumer spending on leisure activities, especially among millennial age group.
Further, the majority of Singapore households in the upper-income segment (household disposable income of US$75,000 and above) are forecasted to account for 66% of total households in 2022, compared to 53% in 2018.
Singapore’s total household spending previously had an average growth of 2.9% between 2013 and 2017.
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