The Ministry of Trade and Industry (MTI) forecasts Singapore’s GDP growth at approximately 1.0% in 2023, with a range of 1.0% to 3.0% for 2024.
Singapore, 22 November 2023 – The Ministry of Trade and Industry (MTI) has unveiled its economic projections, anticipating Singapore’s GDP growth to be around 1.0% in 2023, with an optimistic outlook of 1.0% to 3.0% in 2024. In the third quarter of 2023, the Singapore economy showed resilience, expanding by 1.1% year-on-year, outpacing the previous quarter’s growth of 0.5%. Notably, the manufacturing sector saw a recovery, expanding by 0.5% on a quarter-on-quarter seasonally-adjusted basis.
The construction sector continued its positive momentum, growing by 6.3% year-on-year, while the wholesale trade sector expanded by 1.2%. The retail trade sector exhibited a growth of 2.2%, and the transportation & storage sector saw a 1.1% increase year-on-year. However, the manufacturing sector faced challenges, contracting by 4.6% year-on-year.
Accommodation and food & beverage services posted positive results, growing by 12.9% and 3.5% year-on-year, respectively. On the other hand, the real estate sector grew by 3.4%, while the administrative & support services sector expanded by 2.0%.
Looking ahead, the MTI’s economic outlook for 2023 suggests challenges from subdued external demand in manufacturing and trade-related sectors. However, the recovery in air travel and tourism is expected to support aviation- and tourism-related industries. The GDP growth forecast for 2023 has been adjusted to approximately 1.0% based on the performance in the first three quarters.
For 2024, global GDP growth rates are expected to face challenges, particularly in the first half of the year, with a potential rebalancing of demand towards goods. The Singapore economy, influenced by global trends, is expected to grow between 1.0% and 3.0%, contingent on factors such as global interest rates and potential downside risks.
Source – MTI
