SINGAPORE: Singapore’s financial system grew greater than anticipated final yr however a lot slower than in 2021, reliable information confirmed Tuesday, as analysts warned of weaker enlargement forward owing to an anticipated recession in key markets.
While the three.8 p.c on-year enlargement used to be welcome, it used to be weighed via a three.0 p.c contraction in the important thing production sector within the final 3 months.
Growth within the fourth quarter got here in at 2.2 p.c, down sharply from 4.2 p.c in July-September, consistent with advance estimates via the industry ministry.
Exports for laptop chips and different merchandise were hit via softer international call for led to via surging inflation and sharp will increase in rates of interest.
The city-state’s financial efficiency is incessantly observed as an invaluable barometer of the worldwide surroundings as a result of its reliance on industry with the remainder of the sector.
Last yr’s enlargement beat the three.5 p.c anticipated via the federal government however used to be part the 7.6 p.c upward thrust loved in 2021.
“While the slight outperformance suggests some resilience in economic activities for now, the overall trend remains on the downside,” Yeap Jun Rong, marketplace analyst at on-line buying and selling company IG, mentioned in a be aware.
Research space Capital Economics mentioned it expects exports to fall additional on expectancies the worldwide financial system would input a recession this yr.
“Elevated interest rates, declining household savings and high inflation are likely to drag on domestic demand,” it added.
Song Seng Wun, a regional economist with CIMB Private Banking, informed AFP: “The Singapore economy, though faced headwinds, did well enough. But the outlook is cautious given that we are such a trade-dependent economy.”
Prime Minister Lee Hsien Loong warned in his New Year’s message that enlargement this yr is predicted to ease to 0.5-2.5 p.c.
“The international outlook remains troubled. The Russia-Ukraine conflict continues, with no good outcome in sight,” he mentioned.
“US-China tensions are likely to persist. How quickly China recovers from Covid-19 remains to be seen, while the US and EU may well enter recession. Our economy will be affected.”
While the three.8 p.c on-year enlargement used to be welcome, it used to be weighed via a three.0 p.c contraction in the important thing production sector within the final 3 months.
Growth within the fourth quarter got here in at 2.2 p.c, down sharply from 4.2 p.c in July-September, consistent with advance estimates via the industry ministry.
Exports for laptop chips and different merchandise were hit via softer international call for led to via surging inflation and sharp will increase in rates of interest.
The city-state’s financial efficiency is incessantly observed as an invaluable barometer of the worldwide surroundings as a result of its reliance on industry with the remainder of the sector.
Last yr’s enlargement beat the three.5 p.c anticipated via the federal government however used to be part the 7.6 p.c upward thrust loved in 2021.
“While the slight outperformance suggests some resilience in economic activities for now, the overall trend remains on the downside,” Yeap Jun Rong, marketplace analyst at on-line buying and selling company IG, mentioned in a be aware.
Research space Capital Economics mentioned it expects exports to fall additional on expectancies the worldwide financial system would input a recession this yr.
“Elevated interest rates, declining household savings and high inflation are likely to drag on domestic demand,” it added.
Song Seng Wun, a regional economist with CIMB Private Banking, informed AFP: “The Singapore economy, though faced headwinds, did well enough. But the outlook is cautious given that we are such a trade-dependent economy.”
Prime Minister Lee Hsien Loong warned in his New Year’s message that enlargement this yr is predicted to ease to 0.5-2.5 p.c.
“The international outlook remains troubled. The Russia-Ukraine conflict continues, with no good outcome in sight,” he mentioned.
“US-China tensions are likely to persist. How quickly China recovers from Covid-19 remains to be seen, while the US and EU may well enter recession. Our economy will be affected.”