Singapore's 2023 Economic Growth Trimmed to 1.1% Amid Manufacturing Contraction

06 Apr, 2024

Singapore's 2023 Economic Growth Trimmed to 1.1% Amid Manufacturing Contraction

Singapore's 2023 economic growth underwent a revision, with official data revealing a 1.1% expansion compared to the initial estimate of 1.2%. Notably, growth was primarily propelled by various service sectors, including information and communications, transportation, and other services industries, which saw a 3.9% year-on-year increase. However, the manufacturing sector experienced a contraction, marking the only sector to decline throughout the year. In the fourth quarter, Singapore's economy grew by 2.2% year-on-year, falling short of government estimates due to a downturn in manufacturing activity. Despite this, there was an improvement from the previous quarter.

The manufacturing sector, a significant contributor to Singapore's GDP, saw a 4.3% contraction in 2023, in stark contrast to the growth observed in 2022. Moving forward, Singapore anticipates a gradual recovery in its manufacturing and trade sectors, aligning with global shifts in demand. However, uncertainties persist, including geopolitical tensions and monetary policy changes in various economies. Nonetheless, Singapore remains cautiously optimistic about its economic prospects, with expectations of a continued recovery in the tourism and aviation sectors alongside improved global economic conditions in the latter part of 2024.