Singapore’s Economy Grows 2.2% YoY in Q4, Falling Short of Expectations
Slight Increase from Previous Quarter
SINGAPORE — Singapore’s economy grew 2.2% year-on-year in the fourth quarter of last year, according to official data released today. However, this figure fell short of both the advance estimates, which projected a growth of 2.8%, and the expectations of analysts at Reuters, who anticipated a growth of 2.5%.
The 2.2% growth in Q4 marks a sharp increase from the 1% growth recorded in the previous quarter.
Growth Better than Q3, Forecast Remains Positive
On a quarter-on-quarter seasonally-adjusted basis, Singapore’s economy expanded 1.2% in Q4, slightly exceeding the 1% growth experienced in Q3, as reported by the Ministry of Trade and Industry.
Despite the overall SEC growth of 1.1% in 2023, which is slower than the 3.8% expansion seen in 2022, Singapore’s economy demonstrated strength in the information and communications and transportation and storage sectors. These sectors were the primary contributors to the growth in 2023.
The Ministry of Trade and Industry has maintained a growth forecast of 1% to 3% for Singapore’s GDP in 2024.
Sector Performances
The growth in Singapore’s information and communications sector was 4.7% year-on-year, slightly slower than the 6% growth observed in the previous quarter. On the other hand, the finance and insurance sector experienced a significant growth of 5.4% year-on-year, surpassing the 2.5% growth experienced in Q3 of the previous year.
Positive Outlook for 2024
The Monetary Authority of Singapore, in its January forecast, stated that Singapore’s economy is expected to strengthen this year, assuming there are no further global shocks.
This is a developing story. Please check back for updates.
