Singapore’s economy grew 3.8% in 2022, beating official forecasts

Shoppers browse merchandise in a shopping mall on Orchard Road, in Singapore Dec 23, 2022. REUTERS/Isabel Kua/File photo

Singapore’s economy grew 3.8 percent in 2022, preliminary data showed on Tuesday, beating government expectations but slower than the previous year.

The government’s official forecast for growth in 2022 was 3.5 percent, slower than 7.6 percent in 2021.

Gross domestic product (GDP) expanded 2.2 percent in October-December on a year-on-year basis, the Ministry of Trade and Industry said in a statement. Eight economists polled by Reuters had expected growth of 2.1 percent.

GDP grew 0.2 percent on a quarter-on-quarter seasonally adjusted basis in October-December.

“It is concerning that there is a slight quarter-on-quarter fall in services … this showed the impact of the global slowdown on external oriented services sectors, and that further growth from current levels will be harder to achieve in 2023,” said MUFG analyst Jeff Ng.

Singapore Prime Minister Lee Hsien Loong said in his New Year message on Saturday that the international outlook remains troubled, which will affect the city-state’s economy. The government expects growth of between 0.5 percent to 2.5 percent this year.