Singapore narrowed its projection for economic growth in 2023 on the back of a weak outlook for external demand.
So far in 2023, Singapore's economy has seen tepid growth. On a year-on-year basis, gross domestic product grewbefore improving slightly to 0.5 per cent in the second quarter.
China’s growth is also expected to moderate through the rest of the year, as the post-pandemic recovery in services slows in tandem with deteriorating consumer confidence. On top of that, there remains a host of uncertainties such as more persistent-than-expected inflation in the advanced economies, as well as the risk of escalation in the war in Ukraine and geopolitical tensions among major powers.WHICH SECTORS ARE IMPACTED?
Other vulnerable industries include the finance and insurance sector, which is feeling the squeeze from restrictive financial conditions and the global economic slowdown. The prospects for other consumer-facing sectors, such as retail and food and beverage services, are also looking rosy, with support from resilient labour market conditions and the recovery in inbound tourism.“ are likely to enjoy tailwinds from the ongoing normalisation in international travel amid returning Chinese tourists, and large-scale events including the Singapore Grand Prix.
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