HomeNewsSingapore narrows 2023 progress forecast on 'weak' exterior demand Acquire US

Singapore narrows 2023 progress forecast on ‘weak’ exterior demand Acquire US

A common view of the Central Enterprise District and the Merlion, illuminated with a projection throughout the iLight Marina Bay on March 29, 2018 in Singapore.

Suhaimi Abdullah | Getty Pictures Information | Getty Pictures

Singapore narrowed its financial progress forecast to a spread of 0.5% and 1.5% for this 12 months, citing sluggish exterior demand amid a weak international economic system.

The expansion forecast was trimmed from an earlier vary estimate of 0.5% to 2.5%, stated the Ministry of Commerce and Trade on Friday. 

Gross home product for the April to June quarter grew 0.5% year-on-year, falling wanting the federal government’s advance estimate of 0.7% introduced in July.

“Singapore’s exterior demand outlook for the remainder of the 12 months stays weak,” the ministry said in a statement.

On a quarter-on-quarter seasonally adjusted foundation, Singapore’s economic system eked out marginal progress of 0.1% — a reversal from the 0.4% contraction within the first quarter of this 12 months, narrowly avoiding a technical recession or two consecutive quarters of contraction.

The exports-led manufacturing sector shrank by 7.3% year-on-year within the April-June interval, worse than the 5.4% contraction within the earlier quarter.

“Aside from the anticipated slowdown in Singapore’s key exterior demand markets, the worldwide electronics downturn can be prone to be protracted, with a gradual restoration anticipated in direction of the top of the 12 months on the earliest,” it famous.

World draw back dangers

Particularly, manufacturing output is prone to be “weighed down largely by output contractions within the electronics and precision engineering clusters given the worldwide electronics downturn,” the ministry added.

Progress within the finance and insurance coverage sector can be anticipated to be sluggish because of continued weak spot within the exterior financial scenario and tight monetary situations.

The federal government additionally highlighted draw back dangers within the international economic system stay, including that the “outlook for the remainder of the 12 months stays tepid.”

These embrace extra persistent than anticipated inflation within the superior economies, which might induce tighter international monetary situations and result in a bigger retraction in international spending.

The danger of escalations within the warfare in Ukraine and geopolitical tensions amongst main international powers might additionally result in “renewed provide disruptions, dampen client and enterprise confidence, in addition to weigh on international commerce,” the ministry stated.

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