Singapore economy to grow ‘markedly slower’ in 2023: report

UOB forecasts a 0.7% GDP growth rate. 

Singapore’s economy will expand “markedly slower” in 2023, the UOB Group projected due to external economic conditions that could hit the manufacturing and services sector.

UOB expected Singapore’s gross domestic product to grow by 0.7% in 2023, which is closer to the lower end of its 0.5%02.5% forecast range. 

“Our 2023 outlook is largely premised on broad moderation in external economies next year, and we project the US and European economies (which are key end markets for Singapore) to enter into a recession in the next 6-12 months amidst aggressive monetary policy tightening stance among these advanced economies,” the report read in part. 

“This will directly impact the manufacturing and external-oriented services sectors (such as wholesale trade, transport and finance & insurance).” 

Read more: GDP to grow 3.7% YoY in 2022: RHB

In 2023, UOB projected Singapore’s manufacturing sector to contract by 5.4%, down from a projected growth of 2.8% in 2022. 

This is largely due to the faltering electronics outlook and weaker external demand. 

UOB added there may also be upside risk factors, linked to the continued recovery in leisure and business aire travel.