Electronic sector to recover in 2024
The industry was improved by the rise of AI.
The electrical and electronics sector may have improved due to the AI boom but its recovery will likely move to 2024, broker, CGS-CIMB, said.
The statement stemmed from the recent inflation figures, with manufacturing figures improved due to electronics.
"We cut our 2023 GDP forecast to 0.9% YoY on weak 1H23 growth, sluggish trade outlook, and our cautious stance on the external and electronic sectors," read the brokerage report.
The semiconductor industry, specifically, will see a prolonged demand weakness and may record extended period of decline. It sector recovery will reach only in 2023.
Singapore's central bank reported that the core and headline inflation decelerated further to 3.8% yoy and 4.1% yoy, respectively, compared with the previous month.