Economists cut Singapore’s 2023 growth forecast to 1.4% as global economy slows: MAS survey

SINGAPORE: Private economists have cut their economic growth forecast for Singapore this year to 1.4% from 1.9% forecast in March.

The latest survey of professional forecasters was released by the Monetary Authority of Singapore (MAS) on Wednesday (June 14). The survey was sent out on May 25th.

Contagion from a slowdown in external growth emerged as the most frequently cited downside risk to the domestic outlook, as noted by 61% of 24 respondents. It also most frequently ranked high as a downside risk.

Respondents also cited rising inflationary pressures and geopolitical tensions as risks to domestic growth prospects.

last month, China bans US chip giant Micron Chip sales to major domestic industries have been halted amid heightened tensions between the two countries. The war in Ukraine is also intensifying.

Some 71% of respondents cited stronger growth in China, underpinned by economic reopening and macroeconomic policy easing, as the biggest upside risk to Singapore’s growth outlook.

China earlier this year reopened borders He abolished the mandatory quarantine for immigrants.

Singapore’s Ministry of Trade and Industry (MTI) in May left its 2023 growth forecast unchanged. 0.5% to 2.5%the growth rate is likely to be “around the midpoint” of this range.

Respondents to the latest MAS survey expect gross domestic product (GDP) to expand by 2.5% in 2024.