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Singapore announced, on Monday, that it “will maintain its forecast for economic growth for the year 2023, despite the slowdown recorded last year, which was encouraged by China’s rapid reopening of its economy after years of its commitment to the strict zero Covid policy.”
Singapore’s economic performance is often seen as a barometer of the international climate, given its dependence on trade with the rest of the world.
Singapore announced, on Monday, that it “will maintain its forecast for economic growth for the year 2023, despite the slowdown recorded last year, which was encouraged by China’s rapid reopening of its economy after years of its commitment to the strict zero Covid policy.”
Singapore’s economic performance is often seen as a barometer of the international climate, given its dependence on trade with the rest of the world.
Singapore’s Ministry of Commerce and Industry said in a statement that it “will maintain its forecast for growth of between 0.5 and 2.5 percent.”
She added, “The pace of growth in China is expected to improve in conjunction with a faster-than-expected easing of its restrictions on Corona, which leads to an improvement in growth prospects in regional economies.”
She pointed to “the decline in the prices of basic materials in the world,” but warned that “they are still high in light of the continuation of the war in Ukraine.”
Singapore’s economy is improving
Singapore’s economy improved by 3.6% in 2022, slowing from the 8.9% growth recorded in 2021, according to the Ministry of Trade and Industry.
The Singaporean government lifted most of the coronavirus restrictions last year. On Monday, it abolished the obligation to wear a mask on public transport.
“The economy is still resilient, although the gross domestic product is in a slightly weaker position, while the employment market is in a strong position,” said Song Seng Won, regional economist at CIMB Bank.
Blurry sides
Despite the reopening of the Chinese economy and other positive global trends, the ministry warned of “uncertainties”.
She referred, for example, to “campaigns to raise interest rates by central banks to control inflation, the repercussions of the difficulties faced by the real estate sector and the decline in global demand for China’s recovery.”
And she added, “Any further escalation in the Ukraine war and geopolitical tension between major international powers could lead to worse supply disruptions, negatively affect consumer and business confidence, and burden global trade.”
Selina Ling, chief economist at OCBC Bank, said: “The reopening of China is a good indicator of growth momentum in the region, if Chinese consumer demand for goods and services improves in the coming months. However, this may not be enough to compensate for the slowdown in demand in other major economies such as the United States, the eurozone and the United Kingdom. (AFP)
