Singapore’s economic upswing unlikely to last: experts

In 2023, experts predict a GDP growth of 0.7% for Singapore.

Singapore’s broad-based economic upswing from 3Q23 to the beginning of 4Q23 will likely subside, according to analysts. 

According to the Institute of Chartered Accountants in England and Wales (ICAEW), the upswing is unlikely to last due to “global challenges and the loosening labour market.”

“On the domestic front, the country faces a slightly loosening labour market with rising unemployment and sharply slowing wage growth,” ICAEW said.

“The economic uncertainty is likely to prompt households to prioritise savings over spending, adding to headwinds from high-interest rates alongside diminishing wealth effect from broadly flat property prices in 3Q23,” ICAEW added.

The softening of the labour market, alongside an easing of core inflation, can also result in the unwinding of the “historically tight” monetary policy of the Monetary Authority of Singapore (MAS) in the coming year, said the institute.