Economists unveil 3 risks to Singapore’s economic growth

Experts expect the economy to grow 1.0% in 2023.

Economists have become less optimistic about the growth of Singapore’s economy, with most expecting a 1.0% full-year increase.

In 2Q23, economists were expecting a 1.5% GDP growth for 2023.

According to the Monetary Authority of Singapore’s (MAS) Survey of Professional Forecasters, there will be three key risks to the Lion City’s economic growth.

More than six in 10 (69%) economists point to “spillovers from an external growth slowdown” as the top downside risk to the domestic outlook.

Experts also flagged inflationary pressures (50%) and spillovers from slowing growth in China (43.8%) as risks to the domestic growth outlook. 

Things will turn around for Singapore’s economy, however, if there will be better-than-expected external growth, according to 60% of economists.

Economists also said more robust growth in China (46.7%)  and tech cycle recovery (33.3%) are also upside risks for Singapore’s economy.

In 2024, economists believe GDP will expand by 2.5%.

“Their forecasts of the most probable outcome for growth fall between 2.0 and 2.9%, similar to the previous survey. The average probability assigned to the range is 38.9%, up slightly from 36.1% previously,” MAS reported.