© Reuters. FILE PHOTO: A ship docks at Keppel terminal in Singapore November 17, 2020. REUTERS/Edgar Su/File Photograph
By Xinghui Kok
SINGAPORE (Reuters) -Singapore’s economic system grew 2.8% within the fourth quarter year-on-year, preliminary authorities knowledge confirmed on Tuesday, quicker than some economists anticipated and helped by enhancements in building and manufacturing.
The fourth quarter progress in gross home product (GDP) was quicker than the 1% growth within the third quarter of 2023.
For the complete 12 months of 2023, Singapore’s economic system grew 1.2%, moderating from the three.6% progress in 2022.
Each OCBC economist Selena Ling and Maybank economist Chua Hak Bin mentioned the year-on-year progress was higher than they’d anticipated within the fourth quarter. Ling was anticipating a 1.8% growth whereas Chua was 2.5%.
“Inexperienced shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” mentioned Maybank’s Chua, who expects GDP progress of two.2% in 2024.
OCBC’s Ling forecast vary for 2024 is 1-3%, in keeping with the commerce ministry’s projection.
“The important thing query is how a lot of a pickup in progress momentum we could have this 12 months given the present uncertainties over whether or not the U.S. will escape a recession, and if or when the Fed will lower charges, and the way geopolitics will play out with U.S and different elections,” she mentioned.
On a quarter-on-quarter seasonally adjusted foundation, GDP expanded 1.7% within the October to December interval, extending the 1.3% growth within the third quarter.
Financial coverage is due for assessment no later than January 29, mentioned the central financial institution on Tuesday. The Financial Authority of Singapore (MAS) had elevated the frequency of evaluations from twice a 12 months to quarterly beginning in 2024.
In October, the MAS left coverage settings unchanged as inflation within the city-state moderated.
Singapore’s core inflation slowed to three.2% in November final 12 months from a peak of 5.5% in January and February.
