ADB lowers 2023 inflation forecast for Singapore to 4.9%

From January to September, Singapore’s inflation rate rose by 5.1% on average.

The Asian Development Bank (ADB) has slightly revised down its 2023 inflation forecast for Singapore to 4.9%.

In its December report, ADB noted that whilst crude oil prices have risen in recent months, food, retail, and accommodation costs in Singapore have moderated.

From January to September, Singapore’s inflation rate rose by 5.1% on average and core inflation rose by 4.5%.

Meanwhile, ADB retained its growth forecast for gross domestic product (GDP) growth at 1.0% for 2023 and 2.5% for 2024.

Based on the ABD report, Singapore’s economy grew by 0.7% in the first three quarters of 2023, lower than 4.2% in the same period last year. 

“Services and construction were strong, but external demand remained weak,” ADB reported.

ADB, however, noted emerging signs that external trade, although still weak, is improving. 

In October, non-oil exports grew by 4.5%, marking the first growth after 12 consecutive months of contractions. Oil exports also rebounded by 17.4% in October, following a 12.5% contraction in September.