Full-year outlook for economy narrows to 3.5% due to softened global demand

Electronics and chemical clusters will suffer from impacts in weaker demand.

The Ministry of Trade and Industry (MTI) is expecting the gross domestic product for 2022 to narrow to around 3.5%, following the stringent lockdowns in China and the Eurozone's energy woes.

The weaker global economic outlook will weigh on the growth of Singapore’s sectors such as electronics and chemical segments.

But the strong recovery in air travel and international visitor arrivals will beef up operations in aviation and tourism-related sectors “such as air transport and arts, entertainment & recreation, as well as consumer-facing sectors like food & beverage services.” 

Economic reopening also heightened recovery in Singapore’s professional services sector.

In the third quarter of 2022, the Singapore economy eased by 4.1% on a year-on-year basis from the 4.5% increase in the preceding quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy went up by 1.1%, reversing the 0.1% shrink in the second quarter.

Earlier, the government also projected that economic growth for the market will continue to ease, saying the 2023 economic outlook will be at 0.5% to 2.5%.