SINGAPORE: A recent survey conducted by the Monetary Authority of Singapore (MAS), the country’s central bank, showed that the GDP growth for Singapore next year may be at 2.3 per cent, which is lower than the 2.5 per cent predicted last quarter.
The survey’s results are drawn from responses from 25 analysts and economists. Additionally, industry experts say inflation is expected to be lower than for this year. Headline inflation is predicted to drop to 3.4 per cent, while core inflation, where private transport and accommodation prices are removed from consideration, is predicted to decrease to 3 per cent.
However, those who were surveyed forecast slightly higher headline and core inflation rates for 2024 in the most recent survey compared to their responses in September.
For the fourth quarter, headline inflation is expected at 4 per cent, and core inflation at 3.1 per cent.
Overall, economists and analysts expect headline inflation for 2023 to be 4.8 per cent, a slight change from the 4.7 per cent they predicted last quarter. The prediction for core inflation, 4.1 per cent, is still the same.
Singapore’s economy is still predicted to grow by 1 per cent this year, showing that industry experts have not changed their prediction since September.
The outlook for most sectors, excluding construction, accommodation, and food service, remains bearish, and a rise in private consumption is expected.
In 2022, the economy grew by 3.6 per cent. This was lower than the estimated data and showed that the economy had slowed down significantly compared to 2022.
The Ministry of Trade and Industry (MTI) said in February that the economy in the fourth quarter of 2022 grew by 2.1 per cent year-on-year, a smaller growth rate when compared to the previous quarter.
Last year, the manufacturing sector grew by 2.5 per cent, the construction sector by 6.7 per cent, and the service industry grew by 4.8 per cent.
The ministry then noted the challenges the economy faced due to global tensions, which include tightening financial conditions in many advanced economies, wars, and geopolitics among major powers.
MTI said in February that it expected Singapore’s economic growth forecast for 2023 to be between 0.5 and 2.5 per cent.
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