Selina Ling, OCBC Bank’s chief economist, says that although the Ministry of Trade and Industry maintains that a 2023 recession is not its “baseline scenario”, the official growth forecast implies a further slowdown from this year.
The government does not expect Singapore to dip into a recession next year but slowdown risks abound, and the country’s economy will increasingly become “two-sided” because of the different exposures to various economic sectors.
On Nov 23, the government projected that Singapore’s gross domestic product (GDP) will grow by 0.5% and 2.5% next year, down from about 3.5% this year, as the slowing global economy weighs on the growth of outward-oriented sectors in the country.
