Singapore's economy grew 2.2% in the fourth quarter, slower than forecast

SINGAPORE — Singapore's economy grew 2.2% year-on-year in the fourth quarter last year, falling short of the government's advance estimates of a 2.8% growth as manufacturing activity shrank, official data on Thursday showed.

The reading, however, marked a sharp increase from the 1% growth in the previous quarter.

On a quarter-on-quarter seasonally-adjusted basis, Singapore's economy expanded 1.2% in the fourth quarter, slightly better than the 1% growth in the third quarter, according to the Ministry of Trade and Industry.

The economy as a whole grew 1.1% in 2023 — as the government revised down the full-year economic growth from an earlier estimate of 1.2%.

Full-year growth was slower than the 3.8% expansion in 2022. Last year's growth was largely driven by "other services industries" which grew by 3.9% year-on-year. Information and communications, as well as transportation and storage sectors also drove growth.

The manufacturing sector — a key driver of the economy — contracted by 4.3%, reversing from the 2.7% growth in 2022. Singapore's construction sector grew by 5.2%, an improvement from the 4.6% expansion in 2022.

Growth in the information and communications sector came in at 4.7% year-on- year, slower than the 6% growth in the preceding quarter, while the finance and insurance sector grew 5.4% year-on-year, faster than the 2.5% growth in the previous quarter.

The GDP growth forecast for 2024 was maintained at 1% to 3%, the ministry said.

"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," said the release. A continued recovery in air travel and tourism demand will also lend support to Singapore's tourism and