Singapore downgrades Q4 GDP, keeps 2023 forecast

SINGAPORE  -Singapore’s economy grew slightly less than initially estimated in the fourth quarter from a year ago, official data showed on Monday, and the government kept its forecast for annual growth to come in at 0.5 percent – 2.5 percent this year.

“Singapore’s external demand outlook for 2023 has improved slightly. In particular, growth in China is projected to pick up in tandem with the faster-than-expected easing of its COVID-19 restrictions,” said Gabriel Lim, permanent secretary for trade and industry.

Gross domestic product (GDP) grew 2.1 percent year-on-year in the fourth quarter, the Ministry of Trade and Industry (MTI) said, slightly lower than the 2.2 percent growth in the government’s advance estimate due to slightly weaker construction and service sector growth.

Analysts had expected a 2.3- percent increase, according to a Reuters poll.

For the full year, GDP grew 3.6 percent versus an initial 3.8 percent estimate.

Since April last year, Singapore had 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 hub is expecting the tourism sector to recover to pre-pandemic levels by 2024.

Inflation

Singapore has seen some slight signs of price pressures easing in recent months but inflation still remained elevated at about 5 percent.

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