Economy
Singapore’s economy expanded by 1.1% in 2023
Singapore’s economy grew 1.1% in 2023, with a forecast of 1.0-3.0% growth for 2024. Prime Minister Lee Hsien Loong had said, “Growth was not quite as high as we would have liked, but it has been a steady year, and we avoided a recession.”
The Ministry of Trade and Industry (MTI) of Singapore announced today that the nation’s economy expanded by 1.1% in 2023, a performance marking a deceleration from the 3.8% growth observed in 2022, even after its exit from the pandemic since February 2023.
Despite the moderation in growth, the MTI maintains an optimistic GDP growth forecast for 2024, projecting an expansion in the range of 1.0% to 3.0%.
Q4 2023 Economic Performance: A Closer Look
In the final quarter of 2023, Singapore’s economy experienced a notable acceleration, growing by 2.2% year-on-year, an improvement from the 1.0% expansion seen in the third quarter.
This growth was slightly more pronounced on a quarter-on-quarter seasonally-adjusted basis, with the economy expanding by 1.2%.
Sector-wise, the manufacturing sector rebounded with a 1.4% year-on-year growth after facing a 4.9% contraction in the previous quarter.
This positive turnaround was driven by expansions in the electronics, transport engineering, and chemicals clusters. Meanwhile, the construction sector saw its growth rate pick up to 5.2% year-on-year, bolstered by increased outputs in both public and private sector construction.
However, the retail trade sector contracted by 0.3% year-on-year, a downturn from the 2.3% growth in the preceding quarter, primarily due to a decline in non-motor vehicle sales volumes.
On the other hand, the transportation & storage sector improved, expanding by 2.8% year-on-year, thanks to robust growth in the air transport segment and water transport segment, supported by increased container throughput and total sea cargo handled at Singapore’s ports.
2023 Yearly Overview and Sectoral Insights
For the entirety of 2023, while the manufacturing sector experienced a contraction of 4.3%, the construction sector and services producing industries showed resilience.
The construction sector grew by 5.2%, an improvement from the previous year, and the services sector expanded by 2.3%, albeit at a slower pace than in 2022.
2024 Economic Outlook and Global Context
Looking ahead, the global economic outlook for 2024 appears largely unchanged since the Economic Survey of Singapore in November 2023.
Advanced economies are expected to see moderated growth in the first half of 2024 due to tight financial conditions, with a gradual recovery anticipated as inflationary pressures ease and monetary policies adjust.
The regional economies, particularly in Asia, are expected to witness growth, buoyed by the recovery in global electronics demand and continued recovery in tourist arrivals.
Specifically, Singapore’s manufacturing and trade-related sectors are projected to experience a gradual pickup in growth, in line with the global rebound in electronics demand. The continued recovery in air travel and tourism demand is also expected to bolster growth in tourism- and aviation-related sectors.
Despite these positive indicators, the MTI cautions of significant downside risks to the global economy, including geopolitical tensions, the potential for financial system vulnerabilities, and unexpected cost shocks that could disrupt the global economic recovery.
Speaking to reporters on the 2023 figures, Prime Minister Lee Hsien Loong said, “Growth was not quite as high as we would have liked, but it has been a steady year, and we avoided a recession. Next year, meaning 2024, we hope will be stronger than 2023.”
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Title is just politically correct – “Expanded by 1.1%”. Looking at the trend since about 2018 (i.e. pre-covid), it is more truth to say “Stagnated at about 1% while monkeys continue to collect highest pay”. Surely SG has become one of Asia Monkeys from the previous one of Asia Tigers under ah loong.
If those ongoing massive GDP booster white elephant construction projects that we see around us over the last few years are taken out SG would have indeed entered into a period of economic stagflation with near zero GDP growth, increasing retrenchment, COL, mental health problems besetting our once Sunny Singapore.It’s interesting to see how many more GRCs Pappies will loose in the coming GE.
We need cheaper workers in pariahment. Cheaper ministers and cheaper mps. Their dismal performance and screwups fully justify their cheaper wages. Then GDP will definitely shoot up as the performance incentives always work the way they should. Please half all the pariahment workers salaries!
A lot of MP Time resources, human efforts WERE blatantly wasted on mistakes after mistakes after mistakes – fares mistakes, GST mistakes, one can name it and write a booklet. And esp tremendous EFFORTS EXPENDED on taking down anti PAP ideas.
Surely all these WOULD BE MUCH BETTER UTILISED if there are DEDICATED, HARDWORKING, ‘CHEAP’ organised political efforts towards assisting SG to prosper instead of FATTENING own wallets to BUILD SG economy INSTEAD of constant BLAMES on globalisation and techadvancrs as though SG is the victim and the rest of the WORLD WISE and SMART enough to take advantage.
ln the 60s 70s 80s 90s, easily not literally, but with complex hard work, good leadership with strategic foresight, (not tt kind of strategic lies we were told about on concealing Reserves and corruption investigations) simple basic industries we have had, garments, plywood, electronics, electrical assembly by NS, Fair child, Starlight Plywood, Estelle (?) Garments et al – have SG a GDP growth of between 4-8 per cent eyes closed.
Was the world more negative towards SG? Was that world harsh against only 2,4 million people – AND NOT MANY FOREIGNERS to snatch locals rice bowls.
So we are back to pre-covid situation – economy growing only in the 0.5-1.2% range. After over-spending our reserves, after jacking up all taxes/GST/prices/fares, after using importing labor to shore up the GDP numbers . . . there is little forward momentum. No more excuses due to the pandemic, no more excuses about Free Riders, no more excuses about foreign inference, no more excuses of MIW not corrupt, no more daddy to run to. The MSM-interviewed analysts still can say Kayu Son is “very bold” to hand over to LawlanWong before next elections, which seems just a nice way of… Read more »
After massively pumping tens of thousands new citizens and new PRs into SG, after getting don’t know how many foreigners to work here all to push up GDP but we are in such a tepid economy situation. Without the massive import and without senseless civil construction works, a number are so wasteful and unnecessary, we are still in such a sorrow state of economic growth?? Today just passed by Bt Timah Road again. There’s a massive construction work stretching for kilometers above the canal. Why spend tonnes of millions public funds to create a garden walkway above the canal where… Read more »