Tuesday, January 3, 2023

In 2022, Singapore's economy expands faster than anticipated

Singapore economy growth: GDP grows more than expected in 2022

 

SINGAPORE: According to official data released on Tuesday, Singapore's economy expanded more than anticipated in the previous year but at a much slower rate than in 2021. This came as analysts predicted weaker growth in the coming months as a result of the anticipated recession in key markets.


Although the year-over-year growth of 3.8% was encouraging, the key manufacturing sector's 3.0% decline in the final three months overshadowed it.


According to preliminary estimates provided by the trade ministry, growth in the fourth quarter came in at 2.2%, a significant decrease from the 4.2% recorded between July and September.


Global demand has softened, hurting computer chip and other product exports as a result of rising inflation and sharp interest rate increases.


The city-state's monetary exhibition is much of the time seen as a helpful indicator of the worldwide climate in light of its dependence on exchange with the remainder of the world.


The growth rate in the previous year was higher than the 3.5 percent that the government had anticipated, but it was only half of the 7.6 percent rise that was experienced in 2021.


Yeap Jun Rong, a market analyst at online trading company IG, wrote in a note, "While the slight outperformance suggests some resilience in economic activities for the time being, the overall trend remains on the downside."


On the basis of expectations that the global economy would enter a recession this year, research firm Capital Economics stated that it anticipates exports falling further.


It went on to say that "high inflation, rising interest rates, and falling household savings are likely to impede domestic demand."


Tune Seng Wun, a provincial financial specialist with CIMB Private Banking, told AFP: " Despite challenges, Singapore's economy performed satisfactorily. However, considering that our economy is so dependent on trade, the outlook is cautious."


In his message for the New Year, Prime Minister Lee Hsien Loong warned that growth this year is expected to slow to 0.5-2.5 percent.


"The outlook for the world is still uncertain. He stated, "The conflict between Russia and Ukraine continues, with no promising outcome."


Tensions between the US and China are likely to remain. While the United States and the European Union may well enter recession, it is unknown how quickly China will recover from Covid-19. Our economy will suffer as a result."


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