Singapore's economy grew faster that official forecasts in 2022 but slower activity in the fourth quarter points to significant risks ahead for the city-state in the new year as global demand weakens and inflationary pressures weigh.
Singapore's economy grew 3.8% in 2022, preliminary data from the Ministry of Trade and Industry showed on Tuesday, beating government forecast for growth of 3.5% and down from 7.6% in 2021.
Gross domestic product expanded 2.2% in October-December on a year-on-year basis, the government data showed, almost half the 4.2% growth seen in the third quarter. Eight economists polled by Reuters had expected growth of 2.1%. "It is concerning that there is a slight quarter-on-quarter fall in services … this showed the impact of the global slowdown on external oriented services sectors, and that further growth from current levels will be harder to achieve in 2023," said MUFG analyst Jeff Ng.Singapore Prime Minister Lee Hsien Loong said in his New Year
that the international outlook remains troubled, which will affect the city-state's economy. The government expects growth of between 0.5% to 2.5% this year.
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