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Singapore trims 2023 economic growth to 1.1% as manufacturing sector contracts

A long-established gaze of the skyline of the Singapore Central Alternate District, the Marina Bay Sands, the ArtScience Museum and the seating platform at Marina Bay on August 1, 2015 in Singapore.

Suhaimi Abdullah | Getty Photos

SINGAPORE — Singapore diminished its fleshy-year growth for 2023, as legitimate knowledge on Thursday showed the economy grew 1.1% final year when put next with an earlier estimate of 1.2%.

Growth in 2023 become largely driven by “different services industries” which grew by 3.9% year-on-year. Recordsdata and communications, as successfully as transportation and storage sectors also drove growth, the Ministry of Alternate and Alternate said.

“All sectors with the exception of for the manufacturing sector recorded fleshy-year expansions,” the ministry reported.

Singapore’s economy grew 2.2% year-on-year in the fourth quarter final year, falling in need of the federal government’s near estimates of a 2.8% growth as manufacturing project shrank, legitimate knowledge on Thursday showed.

The finding out, alternatively, marked a involving own better from the 1% growth in the earlier quarter.

On a quarter-on-quarter seasonally-adjusted basis, Singapore’s economy expanded 1.2% in the fourth quarter, reasonably of greater than the 1% growth in the third quarter, in step with the Ministry of Alternate and Alternate.

Singapore’s GDP growth in 2023 become slower than the 3.8% growth in 2022.

Closing year, the manufacturing sector — a key driver of the economy — shriveled by 4.3%, reversing from the 2.7% growth in 2022. The construction sector grew by 5.2%, an enchancment from the 4.6% growth in 2022.

Growth in the knowledge and communications sector came in at 4.7% year-on- year, slower than the 6% growth in the preceding quarter, while the finance and insurance coverage sector grew 5.4% year-on-year, faster than the 2.5% growth in the earlier quarter.

Outlook and dangers for 2024

The GDP growth forecast for 2024 become maintained at 1% to 3%, the ministry said.

“Singapore’s manufacturing and replace-connected sectors are anticipated to conception a gradual pickup in growth in tandem with the turnaround in worldwide electronics ask of,” said the free up. A continued recovery in air fade and tourism ask of will also lend enhance to Singapore’s tourism and aviation-connected sectors.

Singapore’s exterior ask of outlook for 2024 stays mostly unchanged, MTI said in the free up.

“Growth in the evolved economies is anticipated to life like in essentially the most important half of the year, primarily because of continued tight financial stipulations,” the ministry said, adding that gradual recovery is anticipated in the 2nd half “in response to an anticipated easing of financial coverage as inflationary pressures proceed.”

That said, worldwide economic headwinds remain, the ministry said, citing the continuing warfare in Gaza and Ukraine, as successfully because the “lagged results of financial tightening,” as among the explanations.

China’s GDP growth will likely remain lackluster in essentially the most important half of the year on the attend of lifeless home consumption and export growth alongside an embattled property market, MTI’s declare continued. Economic growth in the U.S. may perchance perchance be projected to continue easing in the arriving quarters forward of deciding on up in the latter portion of the year.

“With Q4 23 turning out to be great less exuberant than the near estimate had implied, we modestly in the cleave price of our 2024 GDP growth forecast to 2.7% from 3.0,” Barclays said in a present.

The Singapore greenback become trading at 1.347 in opposition to the U.S. greenback after the knowledge free up.

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