Singapore's economy grew slightly less than initially estimated in the fourth quarter from a year ago, official data showed on Monday, and the government kept its forecast for annual growth to come in at 0.5% - 2.5% this year.
Gross domestic product (GDP) grew 2.1% year-on-year in the fourth quarter, the Ministry of Trade and Industry (MTI) said, slightly lower than the 2.2% growth in the government's advance estimate due to slightly weaker construction and service sector growth.
Analysts had expected a 2.3% increase, according to a Reuters poll.
"Singapore's external demand outlook for 2023 has improved slightly. In particular, growth in China is projected to pick up in tandem with the faster-than-expected easing of its COVID-19 restrictions," said Gabriel Lim, permanent secretary for trade and industry.
"Growth outlook of the U.S. and Eurozone economies remains weak amidst tighter financial conditions, which will weigh on consumption and investment spending in these economies," he added.
For the full year, GDP grew 3.6% versus an initial 3.8% estimate.
Analysts said that some services industries will fare better this year amid China's reopening, while manufacturing, especially electronics, is likely to weigh on growth in the short-term
Singapore has seen some slight signs of price pressures easing in recent months but inflation still remained elevated at about 5%.
The current central bank monetary policy stance remains appropriate, said Edward Robinson, Deputy Managing Director at the Monetary Authority of Singapore said. The next policy meeting is expected in April.
Sources: reuters