Singapore downgrades Q4 GDP, but keeps 2023 forecast

A cyclist rides before the city skyline at Marina Bay in Singapore.

Roslan Rahman AFP Getty Images

Singapore’s economy grew slightly less than it initially estimated in the fourth quarter of a year ago, official data showed on Monday, and the government maintained its annual growth forecast to come in at 0.5% – 2.5% this year.

“Singapore’s external demand for 2023 is picking up slightly. In particular, growth in China is forecast to pick up along with faster-than-expected COVID-19 restrictions,” said Gabriel Lim, permanent secretary for trade and industry. .

Gross Domestic Product (GDP) grew 2.1% year-on-year in the fourth quarter, the Ministry of Trade and Industry (MTI) said, slightly lower than the 2.2% growth in the government’s forecast due to weak construction and services sectors. growth.

Analysts had expected a rise of 2.3%, according to a Reuters poll.

For the full year, GDP grew by 3.6% versus the initial estimate of 3.8%.

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Since April last year, Singapore has lifted most of its Covid-19 restrictions with many international events returning to the city-state, attracting tourists and businesses. The remaining restrictions will be relaxed from Monday.

The Asian financial center expects the tourism sector to recover to pre-pandemic levels by 2024.

Inflation

Singapore has seen some signs of easing price pressures in recent months but inflation is still hovering around 5%.

The central bank’s current monetary policy stance remains appropriate, said Edward Robinson, Deputy Managing Director at the Monetary Authority of Singapore. The next policy meeting is expected in April.

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