Guess how much Singaporeans are willing to splurge on Christmas gifts

'Tis the season to loosen your purse strings.

In a release, UOB’s Christmas spend intentions survey reveals that Singapore shoppers were intending to spend significantly more on Christmas gifts this year.

The survey, which interviewed more than 500 respondents in Singapore in November, also found out about who they will be buying gifts for. Singapore shoppers will spend an average of $893 on Christmas gifts this year, 54 per cent more than in 2012.

This increase is matched by festive cheer over the economy with eight out of 10 respondents saying they thought the economy would stay the same or get better next year.

UOB Economist Francis Tan said the positive sentiment ties in with UOB’s projections that the Singapore economy would grow by 3.8 per cent in 2013 and 4.3 per cent in 2014.

“Christmas budgets are getting bigger this year, no doubt buoyed by positive news about the economy. Higher income growth, consistently low unemployment rates and an all-time high labour force participation rate1 have contributed to Singapore shoppers’ merry mood as the year ends.

The increased spend will also spread the festive joy to retailers as we expect growth in retail sales this year.”