Economy grows 1.1% in 2023; MTI retains 2024 growth forecast at 1.0%-3.0%

Economic growth moderated from 2022, when Singapore recorded a 3.8% YoY expansion.

Singapore’s gross domestic product (GDP) grew slower in 2023, expanding 1.1% YoY against a 3.8% YoY growth in 2022.

In 2023, the construction sector (5.2% YoY) and services-producing industries (2.3% YoY) also recorded expansions, albeit lower than their respective 2022 records (4.6% YoY, 5.1% YoY). 

Expansions in both public and private sector construction works gave the construction sector a boat, whilst other services, information & communications and transportation & storage sectors drove growth for the services-producing industries.

On the other hand, the manufacturing sector shrank, contracting by 4.3% YoY. 

All clusters in the manufacturing sector recorded output declines except for the transport engineering cluster.

For 2024, the Ministry of Trade and Industry (MTI) expects GDP to grow by 1.0%-3.0%, citing global and domestic environments.

“Growth in the advanced economies is expected to moderate in the first half of the year, mainly due to continued tight financial conditions, before recovering gradually in line with an expected easing of monetary policy as inflationary pressures recede. Meanwhile, regional economies are expected to see a pickup in growth in the year ahead, supported in part by the turnaround in global electronics demand,” MTI said.

MTI also cited three downside risks in the global economy which may affect Singapore’s manufacturing and trade-related sectors, including the widening Middle East conflict or war in Ukraine, the lagged effects of monetary tightening, and adverse weather events.

“Against this backdrop, Singapore’s manufacturing and trade-related sectors are expected to see a gradual pickup in growth in tandem with the turnaround in global electronics demand,” MTI said.