, Singapore
406 views
Photo by Pang Yuhao on Unsplash

McKinsey sees Singapore’s manufacturing constrained, services resilient

Advanced estimates showed GDP grew 1.2% in 2023.

Even after growing faster than expected last year, Singapore’s economy may continue to face challenges with a sluggish global demand threatening its manufacturing sector, according to McKinsey & Company.

McKinsey noted in its latest regional economic overview that the city-state has been struggling with a severe slowdown in manufacturing activity and key exports for more than a year now, especially in electronics.

“The near-term outlook (on the sector) is expected to remain constrained by slow demand in several important export markets for Singapore's manufacturers, notably China and the European Union (EU),” the global management consulting firm said in the report released on 15 December. 

Bright spots, however, emerge in the economy’s services sector which is expected to stay more resilient thanks to strong rebound of international tourism in Asia Pacific.

Advanced estimates from the Ministry of Trade and Industry last week showed Singapore’s gross domestic product rose 1.2% last year, faster than the state’s 1% growth forecast but still slower than the actual 3.6% growth rate in 2022.

READ MORE: GDP up 1.2% in 2023: MTI

McKinsey highlighted how the services sector served as a key growth driver in the third quarter following the surge of visitor arrivals last year.

Tempering economic growth was its sluggish manufacturing sector with output still down year on year in the third quarter. 

Sticky inflation and the uncertain geopolitical landscape also continue to pose risks to Singapore’s economic outlook, it added.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Lorem Ipsum Singapore Business Review
The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.
Lorem Ipsum 2
Contrary to popular belief, Lorem Ipsum is not simply random text.