Singapore narrows 2023 growth forecast on 'weak' external demand

Singapore narrowed its economical maturation forecast to a scope of 0.5% and 1.5% for this year, citing sluggish outer request amid a anemic planetary economy.

The maturation forecast was trimmed from an earlier scope estimation of 0.5% to 2.5%, said the Ministry of Trade and Industry connected Friday. 

Gross home merchandise for the April to June 4th grew 0.5% year-on-year, falling abbreviated of the government's beforehand estimation of 0.7% announced successful July.

"Singapore's outer request outlook for the remainder of the twelvemonth remains weak," the ministry said successful a statement.

On a quarter-on-quarter seasonally adjusted basis, Singapore's system eked retired marginal maturation of 0.1% — a reversal from the 0.4% contraction successful the archetypal 4th of this year, narrowly avoiding a method recession oregon 2 consecutive quarters of contraction.

The exports-led manufacturing assemblage shrank by 7.3% year-on-year successful the April-June period, worse than the 5.4% contraction successful the erstwhile quarter.

"Apart from the expected slowdown successful Singapore's cardinal outer request markets, the planetary electronics downturn is besides apt to beryllium protracted, with a gradual betterment expected towards the extremity of the twelvemonth astatine the earliest," it noted.

In particular, manufacturing output is apt to beryllium "weighed down mostly by output contractions successful the electronics and precision engineering clusters fixed the planetary electronics downturn," the ministry added.

Growth successful the concern and security assemblage is besides expected to beryllium sluggish arsenic a effect of continued weakness successful the outer economical concern and choky fiscal conditions.

The authorities besides highlighted downside risks successful the planetary system remain, adding that the "outlook for the remainder of the twelvemonth remains tepid."

These see much persistent than expected ostentation successful the precocious economies, which could induce tighter planetary fiscal conditions and pb to a larger retraction successful planetary spending.

The hazard of escalations successful the warfare successful Ukraine and geopolitical tensions among large planetary powers could besides pb to "renewed proviso disruptions, dampen user and concern confidence, arsenic good arsenic measurement connected planetary trade," the ministry said.