SINGAPORE- Singapore’s economy grew 2.8 percent in the fourth quarter year-on-year, preliminary government data showed on Tuesday, faster than some economists expected and helped by improvements in construction and manufacturing.
The fourth quarter growth in gross domestic product (GDP) was faster than the 1 percent expansion in the third quarter of 2023.
For the full year of 2023, Singapore’s economy grew 1.2 percent , moderating from the 3.6 percent growth in 2022.
Both OCBC economist Selena Ling and Maybank economist Chua Hak Bin said the year-on-year growth was better than they had anticipated in the fourth quarter. Ling was expecting a 1.8 percent expansion while Chua was looking at 2.5 percent.
“Green shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” said Maybank’s Chua, who expects GDP growth of 2.2 percent in 2024.
OCBC’s Ling forecast range for 2024 is 1-3 percent , in line with the trade ministry’s projection.
“The key question is how much of a pickup in growth momentum we will have this year given the current uncertainties over whether the US will escape a recession, and if or when the Fed will cut rates, and how geopolitics will play out with U.S and other elections,” she said.
