Singapore GDP Trends Q2 2023
In the second quarter of 2023, Singapore's Gross Domestic Product (GDP) exhibited a year-on-year growth of 0.5 per cent. This figure contrasts with the initial estimate of a 0.7 per cent increase and follows a 0.4 per cent upturn recorded in the first quarter. This marks the country's remarkable expansion for the tenth consecutive quarter, showcasing its resilience in the face of various economic challenges.
This growth was notably propelled by an acceleration in the service sector, which experienced a 2.6 per cent rise compared to the 1.9 per cent growth seen in the first quarter. This positive momentum was driven by sustained advancements in several key areas such as wholesale and retail trade, transportation and storage, real estate, accommodation, and other services.
Furthermore, the construction activity in Singapore remained robust during this period, maintaining a growth rate of 6.8 per cent , closely aligned with the previous quarter's 6.9 per cent expansion. This positive performance was supported by increases in both public and private sector output, underscoring the ongoing vitality of the construction industry.
However, in contrast to the upward trajectory observed in the service and construction sectors, the manufacturing sector faced challenges. It contracted for the second consecutive quarter, with a decline of 5.5 per cent compared to the 3.8 per cent decrease in the previous quarter. This decline was observed across all clusters within the manufacturing sector, painting a less optimistic picture for this particular segment of the economy.
Meanwhile, the Singaporean government revised its GDP growth forecast for 2023, narrowing the projected range to between 0.5 per cent and 1.5 per cent , down from the previous range of 0.5 per cent to 2.5 per cent . This adjustment reflects multiple factors including sluggish external demand, persistent inflation concerns in advanced economies, and ongoing geopolitical tensions.
On a quarterly basis, Singapore's economy experienced a 0.1 per cent expansion in the second quarter, effectively rebounding from the 0.4 per cent contraction seen in the previous quarter. This uptick helped the nation narrowly evade the risk of entering a technical recession, reinforcing its economic resilience and ability to adapt to varying global circumstances.