A basic view of the skyline of the Singapore Central Enterprise District, the Marina Bay Sands, the ArtScience Museum and the seating platform at Marina Bay on August 1, 2015 in Singapore.
Suhaimi Abdullah | Getty Pictures
SINGAPORE — Singapore lowered its full-year progress for 2023, as official knowledge on Thursday confirmed the economic system grew 1.1% final 12 months in comparison with an earlier estimate of 1.2%.
Progress in 2023 was largely pushed by “different companies industries” which grew by 3.9% year-on-year. Data and communications, in addition to transportation and storage sectors additionally drove progress, the Ministry of Commerce and Trade stated.
“All sectors apart from the manufacturing sector recorded full-year expansions,” the ministry reported.
Singapore’s economic system grew 2.2% year-on-year within the fourth quarter final 12 months, falling wanting the federal government’s advance estimates of a 2.8% progress as manufacturing exercise shrank, official knowledge on Thursday confirmed.
The studying, nevertheless, marked a pointy enhance from the 1% progress within the earlier quarter.
On a quarter-on-quarter seasonally-adjusted foundation, Singapore’s economic system expanded 1.2% within the fourth quarter, barely higher than the 1% progress within the third quarter, based on the Ministry of Commerce and Trade.
Singapore’s GDP progress in 2023 was slower than the three.8% enlargement in 2022.
Final 12 months, the manufacturing sector — a key driver of the economic system — contracted by 4.3%, reversing from the two.7% progress in 2022. The development sector grew by 5.2%, an enchancment from the 4.6% enlargement in 2022.
Progress within the info and communications sector got here in at 4.7% year-on- 12 months, slower than the 6% progress within the previous quarter, whereas the finance and insurance coverage sector grew 5.4% year-on-year, sooner than the two.5% progress within the earlier quarter.
Outlook and dangers for 2024
The GDP progress forecast for 2024 was maintained at 1% to three%, the ministry stated.
“Singapore’s manufacturing and trade-related sectors are anticipated to see a gradual pickup in progress in tandem with the turnaround in international electronics demand,” stated the discharge. A continued restoration in air journey and tourism demand may even lend help to Singapore’s tourism and aviation-related sectors.
Singapore’s exterior demand outlook for 2024 stays largely unchanged, MTI stated within the launch.
“Progress within the superior economies is predicted to reasonable within the first half of the 12 months, primarily attributable to continued tight monetary situations,” the ministry stated, including that gradual restoration is predicted within the second half “according to an anticipated easing of financial coverage as inflationary pressures recede.”
That stated, international financial headwinds stay, the ministry stated, citing the continuing battle in Gaza and Ukraine, in addition to the “lagged results of financial tightening,” as among the causes.
China’s GDP progress will seemingly stay lackluster within the first half of the 12 months on the again of sluggish home consumption and export progress alongside an embattled property market, MTI’s assertion continued. Financial progress within the U.S. can also be projected to proceed easing within the coming quarters earlier than choosing up within the latter a part of the 12 months.
“With This autumn 23 turning out to be a lot much less exuberant than the advance estimate had implied, we modestly cut back our 2024 GDP progress forecast to 2.7% from 3.0,” Barclays stated in a notice.
The Singapore greenback was buying and selling at 1.347 in opposition to the U.S. greenback after the info launch.
