SINGAPORE — Singapore’s economy grew by 4 per cent year-on-year in the third quarter of 2022, slowing further as a result of a contraction in the manufacturing sector, according to advance estimates released on Monday (Oct 24) by the Ministry of Trade and Industry (MTI). This is slower than the 4.4 per cent growth recorded in Q2 2022. On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 1.1 per cent in Q3, easing from the 2.5 per cent growth in Q2. The manufacturing sector recorded a 3.1 per cent year-on-year decline in the third quarter, contracting for the first time since the first quarter of 2021. This was due to a decline in output in the biomedical manufacturing, electronics and general manufacturing clusters. The construction sector grew 2.9 per cent year-on-year, moderating from the 4.8 per cent growth in the previous quarter. This was due to a slowdown in both public and private sector construction activity. The services sector expanded by 4.6 per cent year-on-year, slower than the 5.1 per cent growth in Q2. This was due to a moderation in growth in the other services industries, including the wholesale and retail trade, accommodation and food services sectors. The finance and insurance sector grew 6.7 per cent year-on-year, supported by growth in banking and asset management activities. The professional services sector grew 5.8 per cent year-on-year, underpinned by growth in legal, engineering, and architectural services. The information and communications sector grew 3.7 per cent year-on-year, supported by growth in the infocomm and media sub-sectors. The Ministry of Trade and Industry (MTI) said that the Singapore economy is projected to grow by 3.0 per cent to 4.0 per cent in 2022. This is lower than the previous forecast range of 3.0 per cent to 5.0 per cent. The downward revision reflects the weaker-than-expected global economic outlook and the impact of the Russia-Ukraine conflict. MTI also said that the Singapore economy is expected to grow by 0.5 per cent to 2.5 per cent in 2023. This is lower than the previous forecast range of 1.0 per cent to 3.0 per cent. The downward revision reflects the expected slowdown in global growth and the impact of the COVID-19 pandemic on the global economy. MTI said that the external demand outlook has weakened significantly, with many economies facing rising inflation, interest rate hikes, and geopolitical uncertainties. This is likely to weigh on Singapore’s exports and overall economic growth. MTI also noted that the domestic economy is expected to remain resilient, supported by the gradual recovery of the tourism sector and continued growth in the services sector. However, the manufacturing sector is expected to moderate its growth in the coming quarters. Overall, MTI said that the Singapore economy is expected to continue to grow in the coming quarters, but at a more moderate pace. The outlook remains uncertain, and will depend on the global economic environment and the COVID-19 situation..
Singapore’s GDP Growth Slows to 4% in Q3, Outlook Cut Further
