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, official data on Thursday showed, falling short of both the advance estimates of a 2.8% growth and Reuters’ expectations of a 2.5% growth.

The reading, however, marks 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.

On the whole, the Singapore economy grew 1.1% in 2023, slower than the 3.8% expansion in 2022. The growth in 2023 was largely driven by information and communications and transportation and storage sectors.

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

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.

Singapore’s economy is expected to strengthen this year, barring further global shocks, the Monetary Authority of Singapore said in its January forecast. 

This is a developing story. Please check back for updates.