The Singapore economy expanded by 2.8% y-o-y in the 4Q2023, faster than the 1.0% growth in the 3Q2023, based on advance estimates released by the Ministry of Trade and Industry (MTI) on Jan 2.
On a q-o-q basis, the economy grew by 1.7%, extending the 1.3% in the 3Q2023.
For the whole of 2023, Singapore’s economy grew by 1.2%, which is within the 0.5% to 1.5% range forecasted by the Monetary Authority of Singapore (MAS). In his New Year message for 2024 delivered on Dec 31, 2023, Prime Minister Lee Hsien Loong revealed the year’s GDP growth, adding that the MTI expects the republic’s GDP to grow by 1% to 3%. Inflation is also expected to come down further although this will depend on the external environment.
In 4Q2023, the manufacturing sector expanded by 3.2% y-o-y, turning around from the 4.7% contraction in the previous quarter. The sector’s growth was attributed to output expansions across all clusters except the precision engineering cluster.
The construction sector expanded by 9.1% y-o-y, outpacing the 6.2% growth in the 3Q2023 as public and private sector construction output increased.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors collectively grew by 1.5 y-o-y in the 4Q2023, extending the 1.3% growth in the 3Q2023. All sectors within the group recorded expansions during the quarter. Growth in the wholesale & retail trade sector was supported by both wholesale and retail trade activities. The expansion of the transportation & storage sector was partly due to the air transport segment, which grew on the back of the continued recovery in air passengers handled at Changi Airport.
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The group of sectors comprising the information & communications, finance & insurance and professional services sectors grew by 3.9% y-o-y in the 4Q2023, extending the 2.5% growth in the 3Q2023. All sectors within the group expanded during the quarter. Growth in the information & communications sector was led by the IT & information services segment while growth in the professional services sector was mainly driven by the other professional, scientific & technical services segment. Growth in the finance sector was primarily supported by activities auxiliary to financial services, which include payment processing activities.
The rest of the services sectors, which covers accommodation & food services, real estate, administrative & support services and other services sectors, grew by 2.0% y-o-y in the 4Q2023, moderating from the 3.9% growth in the 3Q2023. The accommodation, real estate and other services sectors recorded expansions during the quarter.
