KUALA LUMPUR – Singapore’s economic growth of 2.8% year-on-year in the fourth quarter (Q4) of 2023 has outpaced the 1% uptick in the previous quarter, thanks to the positives in multiple sectors, especially manufacturing and construction.
Based on advance estimates, the island republic’s Q4 performance is also up from the 2.1% recorded a year ago, said its Trade and Industry Ministry today.
It added that the economy grew by 1.2% for the year 2023, moderating from the 3.6% growth in 2022.
On a quarter-on-quarter seasonally-adjusted basis, the economy also expanded by 1.7%, extending the 1.3% expansion in Q3.
“The manufacturing sector expanded by 3.2% year-on-year in the fourth quarter of 2023, a turnaround from the 4.7% contraction in the previous quarter. Growth in the sector was due to output expansions across all clusters, with the exception of the precision engineering cluster.
“On a quarter-on-quarter seasonally-adjusted basis, the manufacturing sector grew by 9.0% in the fourth quarter, accelerating from the 0.3% expansion in the third quarter.
“The construction sector expanded by 9.1% year-on-year in the fourth quarter, faster than the 6.2% growth in the previous quarter.
“On a quarter-on-quarter seasonally-adjusted basis, the pace of growth in the construction sector picked up to 4.3% in the fourth quarter, from 0.8% in the third quarter,” the ministry said in a statement.
On a quarter-on-quarter seasonally-adjusted basis, the wholesale and retail trade, and transportation and storage sectors as a whole shrank by 1.4% in Q4, a pullback from the 0.6% growth in the preceding quarter.
The group of sectors comprising the information and communications, finance and insurance and professional services sectors grew by 3.9% year-on-year in Q4, extending the 2.5% growth in Q3.
On a quarter-on-quarter seasonally-adjusted basis, the sectors in the group collectively expanded by 2.5% in Q4, faster than the 1.6% growth in the third.
The rest of the services sectors (accommodation and food services, real estate, administrative and support services and others) grew by 2.0% year-on-year in Q4, a drop from the 3.9% growth in the previous quarter.
The preliminary GDP estimates for Q4 and the year 2023 will be released in February. – January 2, 2024