Singapore Economy Growth and Outlook

Since the rebound after the pandemic, Singapore noted that its growth decreased from 2021. Before the country had 7.6% but in 2022 it is only 2.8%. There are some factors contributing to why Singapore economy growth dropped. Here is the outlook on the performance.

Singapore Economy Growth Performance

Manufacturing Sector

The performance in 2022 was not better than the previous year. The main factor is the low demand from China. The sector such as manufacturing shrank in Singapore. The output from the manufacturing sector is lower in certain categories such as electronics, biomedical, and chemicals.

The reason why this sector is low is that there was a war between Russia and Ukraine. Monetary policy sets the rules to lower inflation in Singapore. On the other hand, according to the Singapore market research, geopolitical instability in the global market forced Singapore to obey by raising the food and energy price in the country.

Retail Trade Sector

While the manufacturing sector shrank, the retail trade sector had a higher percentage to contribute to economic growth. The growth is about 5.1% because Singapore will have more non-motor vehicle sales in 2021. This growth is distributed to every quarter in 2022.

Construction Sector

This sector is doing better than the previous year because the country is starting to create better infrastructure after the pandemic outbreak. Since the economy is recovering, the government runs its agenda for both private and public. The expansion of its growth will reach about 10% in 2022.

Wholesale Trade Sector

The wholesale trade in Singapore is slower because of less demand from China. The country will only grow by 2.4% in 2022. Most of the supplies are machinery and equipment. The rest is from computers, telecommunications, and some electronic components. It is expected to increase this year to Singapore market research.

Food and Beverage Sector

The food and beverage sector expanded well in 2022 since a lot of people are going to restaurants for many celebrations in Singapore. The tourism sector also contributes to a higher percentage in this sector by 19.6%. The volume expansion is dominated by fast food restaurants and food caterers.

Real Estate Sector

Another sector that contributed to the growth is real estate. The growth reached about 15.2% in 2022 and most Singaporeans contribute to private residential and property. Many of them expand the properties into commercial offices and industrial since more people establish their businesses in Singapore.

Singapore economy growth has a better projection in 2023 since the government fixed its infrastructure to recover from the post-pandemic. Thus, they also welcome foreign investors to invest in a lot of sectors available, especially those related to manufacturing and tourism.

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