In the dynamic landscape of Singapore’s economy, a closer look at the performance during the past year unfolds as follows:
GDP HIGHLIGHTS: Singapore’s Gross Domestic Product (GDP) experienced a 2.2% increase during the final quarter of 2022, maintaining a steady growth momentum.
On an annual scale, the entire year of 2022 witnessed a commendable GDP growth of 3.8%.
MANUFACTURING SECTOR
During Q4 2022, the manufacturing sector encountered a 3.0% contraction. This decline stemmed from reduced output in sectors like electronics, chemicals, and biomedicine.
Interestingly, the negative trend was offset by increased production in precision engineering, transportation engineering, and general manufacturing clusters.
CONSTRUCTION SECTOR
The construction sector rebounded with significant vigor during the fourth quarter of 2022, achieving a remarkable growth rate of 10.4%.
This resurgence was attributed to the expanded construction output in both the public and private sectors as Singapore’s economy continued its recovery.
Nevertheless, the industry still lags behind, approximately 19.3 percentage points below its pre-pandemic levels in Q4 2019.
WHOLESALE & RETAIL TRADE AND TRANSPORTATION & STORAGE SECTOR
The sectors of wholesale & retail trade, as well as transportation & storage, jointly registered a growth rate of 2.3% in Q4 2022.
Particularly, the air transport segment played a pivotal role, experiencing robust growth thanks to the recovery in air passengers handled. The wholesale trade and retail trade activities also contributed to this growth.
INFORMATION & COMMUNICATIONS, FINANCE & INSURANCE AND PROFESSIONAL SERVICES SECTOR
This sector expanded by 2.9% during the fourth quarter of 2022. The increased demand for IT and digital solutions sustained this growth, while the professional services sector found its impetus from segments like architectural & engineering and technical testing & analysis.
Notably, the finance and insurance sector’s growth was influenced significantly by operations like payment processing.
IN SINGAPORE OVERALL
When scrutinizing the economy in Singapore, we observe a quarter-on-quarter expansion of 0.2% after accounting for seasonal adjustments.
While this indicates continued growth, it is notable that the pace of expansion has moderated compared to the previous year. In 2022, the Singaporean economy recorded a growth rate of 3.8%, a noteworthy deceleration compared to the 7.6% expansion in 2021.
