The fourth quarter growth in gross domestic product (GDP) was faster than the 1% expansion in the third quarter of 2023.
For the full year of 2023, Singapore’s economy grew 1.2%, moderating from the 3.6% 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% expansion while Chua was looking at 2.5%.
“Green shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” said Maybank’s Chua, who expects GDP growth of 2.2% in 2024.
OCBC’s Ling forecast range for 2024 is 1-3%, 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 U.S. 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.
On a quarter-on-quarter seasonally adjusted basis, GDP expanded 1.7% in the October to December period, extending the 1.3% expansion in the third quarter.
Monetary policy is due for review at the end of this month after the central bank increased the frequency of reviews from twice a year to quarterly starting in 2024.
In October, the Monetary Authority of Singapore left policy settings unchanged as inflation in the city-state moderated.
Singapore’s core inflation slowed to 3.2% in November last year from a peak of 5.5% in January and February.
Source: Economy - investing.com
