Singapore. The country has maintained its 2023 growth forecast between 0.5% to 2.5%, as data from 13 February showed the economy growing slower compared to last year.
In 2022, the economy expanded 3.6%, which was below the government’s 3.8% estimate. This growth was mostly inspired by the wholesale trade, manufacturing, and other services sectors, according to the Ministry of Trade and Industry.
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During last year’s final quarter, the economy grew by 2.1% year-on-year, which was below that 2.2% projection.
The growth report also showed a revision in the GDP figure for 2021, from 7.6% to 8.9%. This was “to account for data updates and revisions from various sources, including the annual sectoral surveys that (the ministry) carried out throughout 2022”, stated Gabriel Lim, MTI’s permanent secretary.
MTI also shared that Singapore’s external demand outlook for this year improved slightly compared to the report in November. China is expected to ease its pandemic rules so there will be more growth.
“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,” said Lim.
Despite this, the growth outlook for western economies is still weak due to financial conditions, as well as the escalations in the Ukraine conflict.
Additionally, international travel and tourism are set to improve and bump up growth in the air transport, recreation, entertainment, accommodation, and arts sectors.
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