SINGAPORE, Nov 22 (Bernama) – Singapore’s economy grew by 1.1 per cent in the third quarter of 2023 (3Q 2023), faster than the 0.5 per cent growth in the previous quarter, said the Ministry of Trade and Industry (MTI).
In a statement today, MTI said on a quarter-on-quarter, seasonally adjusted basis, the economy expanded by 1.4 per cent, accelerating from the 0.1 per cent expansion in 2Q 2023.
Among the sectors, the ministry said the manufacturing sector shrank by 4.6 per cent year-on-year, compared to the 7.6 per cent contraction in the previous quarter.
“All clusters within the sector contracted except for the transport engineering cluster,” it said.
On a quarter-on-quarter, seasonally adjusted basis, the manufacturing sector expanded by 0.5 per cent, compared to the 1.5 per cent contraction in the previous quarter.
The construction sector, meanwhile, grew by 6.3 per cent year-on-year, extending the 7.7 per cent expansion in the second quarter, as both public and private sector construction output rose.
On a quarter-on-quarter, seasonally adjusted basis, the sector posted slower growth of 0.8 per cent compared to 2.6 per cent in the preceding quarter.
As for the outlook for 2023, MTI said since the Economic Survey of Singapore in August, the United States economy has performed better than expected, due to resilience in its domestic services activity.
However, for the rest of the year, growth in the US and Eurozone is projected to moderate due to the cumulative effects of monetary policy tightening.
Likewise, China’s growth is likely to slow further amidst ongoing weaknesses in its property sector and domestic consumption, as well as subdued external demand.
At the same time, global electronics demand remains sluggish given elevated inventory levels, although there are signs that the downturn may be bottoming.
Given subdued external demand, Singapore’s manufacturing and trade-related sectors such as precision engineering and water transport are likely to remain weak for the rest of 2023.
On the other hand, the ongoing recovery in air travel and inbound tourism is expected to support the growth of aviation and tourism-related sectors such as air transport and accommodation.
Meanwhile, resilient labour market conditions will continue to lend support to consumer-facing sectors like retail trade and food & beverage services.
Considering the performance of the Singapore economy in the first three quarters of the year, as well as the latest external and domestic developments, the 2023 GDP growth forecast for Singapore is narrowed to around 1.0 per cent, from 0.5 to 1.5 per cent.
– Bernama
