© Reuters. FILE PHOTO: A ship docks at Keppel terminal in Singapore November 17, 2020. REUTERS/Edgar Su/File Photograph
SINGAPORE (Reuters) -Singapore’s economic system grew 2.8% within the fourth quarter year-on-year, preliminary authorities knowledge confirmed on Tuesday, sooner than some economists anticipated and helped by enhancements in development and manufacturing.
The fourth quarter development in gross home product (GDP) was sooner than the 1% enlargement within the third quarter of 2023.
For the complete 12 months of 2023, Singapore’s economic system grew 1.2%, moderating from the three.6% development in 2022.
Each OCBC economist Selena Ling and Maybank economist Chua Hak Bin mentioned the year-on-year development was higher than that they had anticipated within the fourth quarter. Ling was anticipating a 1.8% enlargement whereas Chua was 2.5%.
“Inexperienced shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” mentioned Maybank’s Chua, who expects GDP development of two.2% in 2024.
OCBC’s Ling forecast vary for 2024 is 1-3%, according to the commerce ministry’s projection.
“The important thing query is how a lot of a pickup in development momentum we can have this 12 months given the present uncertainties over whether or not the U.S. will escape a recession, and if or when the Fed will minimize charges, and the way geopolitics will play out with U.S and different elections,” she mentioned.
On a quarter-on-quarter seasonally adjusted foundation, GDP expanded 1.7% within the October to December interval, extending the 1.3% enlargement within the third quarter.
Financial coverage is due for assessment on the finish of this month after the central financial institution elevated the frequency of evaluations from twice a 12 months to quarterly beginning in 2024.
In October, the Financial Authority of Singapore left coverage settings unchanged as inflation within the city-state moderated.
Singapore’s core inflation slowed to three.2% in November final 12 months from a peak of 5.5% in January and February.