Singapore economy forecast to grow slower in 2023

The Singapore economy is projected to slow further in 2023 amid growing challenges in the external environment, according to the latest report of the Monetary Authority of Singapore (MAS).
A ship docks at Keppel terminal in Singapore. (Photo: Reuters)
A ship docks at Keppel terminal in Singapore. (Photo: Reuters)

The significant tightening of global financial conditions and continued COVID-19 curbs in some countries are expected to weigh on growth in Singapore’s major trading partners.

Dampened global and regional trade flows will adversely affect activity in Singapore’s manufacturing, wholesale, water transport and storage sectors,, it said.

The global electronics industry, which enjoyed a strong post-pandemic demand surge until early this year, has seen its outlook deteriorate rapidly in recent months.

Singapore's manufacturing sector already weakened in the third quarter, shrinking by 3.2%.

Reports showed that the Singapore economy grew at 4.4% on a year-on-year basis in the third quarter, just below the revised figure of 4.5% in the previous three months.

The country's GDP growth is likely to stay muted in the coming quarters, the MAS said, reiterating the official growth forecast for 2022 at a range of 3 to 4%.