- Singapore’s GDP continued to show growth in Q3, 2023, with an increase of 0.7% year-on-year.
- Despite a contraction in the manufacturing sector, construction, and services sectors witnessed growth contributing to the overall economic expansion.
- The Economy in Singapore shows resilience despite global economic challenges, as sectoral performance, employment, and productivity registers a positive trajectory.
CHANGES, they say, are the only constant thing in life.
Yet, when it comes to an economy, consistent growth is what we all yearn for.
MTI reports that Singapore’s GDP grew by 0.7% year-on-year in the third quarter of 2023, following a 0.5% growth in the preceding quarter.
A Deeper Look into the Numbers
Rising from the ashes, the Lion City’s economy, quarter-on-quarter, expanded by 1%.
In contrast to the 0.1% growth in the previous quarter, this is a significant improvement.
Yet, the manufacturing sector shows a different tale.
A 5% year-on-year contraction was recorded in this sector, even though a small but promising 0.2% growth was seen on a quarter-on-quarter basis.
Let’s not forget. Every cloud has a silver lining.
The Bright Spots
The cranes and diggers were busy. The result?
A 6% year-on-year growth in the heart of the construction sector.
It was bolstered by expansions in both the public and private sector construction output.
A sprinkle of growth was also seen in the wholesale & retail trade and transportation & storage sectors with a combined 0.6% year-on-year expansion.
Meanwhile, the information & communications, finance & insurance, and professional services sectors took a giant stride with a 1.5% year-on-year expansion.
Perspective Lens – Closer Look at the Services Sector
The finance & insurance sector seems to have been left out in the rain.
A contraction was noticeable here. A concerning trend indeed.
But, the remaining group of services sectors including accommodation & food services, real estate, and administrative & support services painted a more vibrant growth picture.
A promising 4.7% year-on-year growth was recorded. Encouraging, if you ask me.
Worth Waiting For…
In less than a month, the Economic Survey of Singapore will be out in November 2023.
This will host the preliminary GDP estimates, sectorial performance, inflation, employment, and productivity data.
More detailed insights will then be able to construct a clearer picture of Singapore’s growth patterns and the resilience of its economy.
One Last Thought…
As we look ahead with eager anticipation, what does the future have in store for Singapore’s economy?
Understanding the past and the present is of course important, but so too is surmising the future.
Do we stand on solid ground for expecting continued growth in the following quarters?
This, my friends, is the question we are all asking. Only time will tell.
Wondering how our economic exploration found you? Did it spark new thoughts or questions? Don’t keep them to yourself. Let’s chat. Comment below. Let your neighbours know what you think. Start a conversation. Let’s make sense of these movements together.
