MTI narrows 2023 GDP growth forecast range to 0.5%-1.5% 

‘Weak external demand outlook’ for the rest of 2023 was cited as the reason for the move.

The Ministry of Trade and Industry (MTI) has narrowed its 2023 GDP growth forecast from 0.5%-2.5% to 0.5%-1.5% amidst a weak external outlook for the rest of the year.

“Apart from the expected slowdown in Singapore’s key external demand markets, the global electronics downturn is also likely to be protracted, with a gradual recovery expected towards the end of the year at the earliest,” the MTI said.

MTI underscored that two downside risks in the global economy remain: the more persistent-than-expected inflation in the advanced economies and the escalations in the war in Ukraine and geopolitical tensions among major global powers.

In 2Q23, Singapore’s gross domestic product (GDP) grew by 0.5% YoY. On a quarter-on-quarter basis, GDP expanded by 0.1%.

Amongst the goods-producing industries, the manufacturing sector saw a contraction in 2Q23, falling 7.3% YoY.

" The weak performance of the sector was due to output declines across all clusters except for the transport engineering cluster," the MTI said.

On the other hand, the construction sector grew 6.8% YoY.

Amongst the services-producing industries, the “wholesale,” “retail trade,” “transportation & storage,” “accommodation,” and “food and beverage services” sectors recorded growths during the quarter, expanding by 1.1% YoY, 2.6% YoY, 4.6% YoY, 13.0% YoY and 5.7% YoY, respectively.