According to the Department of Statistics (Singstat), total retail sales in the republic gained 10.4% y-o-y for October, with the total sales value coming in at $4 billion, of which 13% of sales were from online. Excluding motor vehicles, retail sales were up 14.3% y-o-y at $3.6 billion, of which 14.5% were online sales. The increase in retail sales was partly attributed to larger growths in industries such as clothing and footwear, food and alcohol, department stores, watches and jewellery.
Singaporean consumers continue to spend, even as worries of soaring prices loom. There may be some good news: The Monetary Authority of Singapore (MAS) says global inflationary pressures may have peaked, and given the city-state’s open economy, inflation in 2023 is still seen to be higher than the historical average. MAS also expects the pace of economic growth to slow further in 2023 as pent-up demand from the economic reopening dissipates, and external demand for Singapore’s key electronics exports fades.
“While growth in the economy should continue to be supported by expansions in the domestic-oriented and travel-related sectors, the pace of discretionary spending is likely to moderate as high inflation and the uncertain economic environment dampen consumer sentiment,” says the central bank in its biannual macroeconomic review on Oct 27. MAS adds that discretionary spending in Singapore remains strong and could significantly contribute to inflation.
