Manufacturing Decline Weighs on Growth, While Services Sector Shows Positive Momentum
Singapore’s GDP growth for 2023 is expected to close at 1%, as reported by the Ministry of Trade and Industry (MTI). This comes after Q3 growth was recorded at 1.1%, showing an improvement from the 0.5% growth in the previous quarter. While services sectors like finance and wholesale trade showed positive growth, the manufacturing sector continued to struggle, contracting 4.6% year on year.
The full-year GDP forecast for 2024 is projected between 1% and 3%, with growth driven by sectors like air transport and tourism, despite external economic challenges like China’s slowdown and global trade uncertainty. The manufacturing sector is expected to remain weak, while other sectors such as construction showed signs of recovery with 6.3% growth in Q3.
