Singapore has maintained its growth forecast for 2023 at a range of 0.5 percent to 2.5 percent, as data showed the economy growing slower than expected last year.
The economy expanded by 3.6 percent in 2022, slightly below earlier government estimates of 3.8 percent. Growth was mainly driven by the wholesale trade, manufacturing, and other services sectors said the Ministry of Trade and Industry (MTI).
For the final quarter of last year, the economy grew by 2.1 percent year-on-year, just below the previous projection of 2.2 percent and moderating from the 4 percent expansion in the third quarter.
On a quarter-on-quarter seasonally-adjusted basis, the economy expanded marginally by 0.1 percent, also missing an earlier forecast of 0.2 percent and easing from the 0.8 percent growth in the previous quarter.
The latest growth report card also showed an upward revision in the gross domestic product (GDP) figure for 2021 – from 7.6 percent to 8.9 percent.
This was done “to account for data updates and revisions from various sources, including the annual sectoral surveys that (the ministry) carried out throughout 2022”, said MTI’s permanent secretary Gabriel Lim at a press conference.
While it has kept to its earlier forecasts for growth, MTI said Singapore’s external demand outlook for 2023 has “improved slightly” since its last quarterly report in November
In particular, growth in China is set to pick up with the easing of the country’s strict pandemic rules.
“China’s faster-than-expected reopening from the COVID-19 restrictions will definitely not just help but benefit Singapore’s sectors – for example, tourism, aerospace, and so on – but also uplift regional economies, which will in turn also have a positive second-order effect on Singapore,” Mr Lim said.
However, this ought to be seen in the context of broader challenges elsewhere, such as in the United States and the eurozone, he added.
The growth outlook for these Western economies remains weak because of tight financial conditions, which will weigh on consumption and investment spending.
