MTI announces forecasted economic growth for Singapore

According to the Ministry of Trade and Industry, the country’s economic growth is expected to slow to 0.5% to 2.5% in 2023 due to global uncertainties.

This year, the gross domestic growth narrowed from 3% to 4%.

Since August, the country’s external demand outlook has decreased due to the weaker outlook for the Eurozone economy driven by an energy crunch, as well as for China as it continues to fight recurring COVID-19 outbreaks and a property market downturn.

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In its 2023 forecast, the MTI said that GDP rates for major economies are expected to moderate further from 2022 levels. Sharp slowdowns are also projected in the Eurozone and the US.

Next year, global disruption supplies are expected to continue due to the conflict in Ukraine. However, the frequency of these disruptions is expected to decrease.

For the third quarter of 2022, Singapore’s economy increased by 4.1% year-on-year, easing from 4.5% growth in the preceding quarter.

On the positive side, there is a strong recovery in international visitor arrivals and air travel. This is expected to continue and benefit sectors like recreation, food and beverage services, entertainment, transport, arts, and other tourism-related sectors.

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Despite this, financial stability risks remain, especially now as advanced economies raise interest rates to combat inflation.

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“Against this backdrop, the growth of outward-oriented sectors in Singapore is expected to weaken in tandem with the deterioration in external demand conditions,” said MTI.

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