, Singapore

Singapore avoids recession due to growth in services sector

The Lion City is expected to post a 0.8% GDP increase this year.

Singapore’s economy averted a potential recession, posting a gross domestic product growth of 0.7% year-on-year (YoY), on the back of the robust expansion in the services sector, offsetting the contraction in manufacturing.

In a report, Maybank noted that the services sector rose by 3% YoY, on the back of the wholesale and retail trade, which grew 2.6%. 

This was also supported by the transportation and storage sector which saw a 114.7% rise in air passenger volumes in April/May, an 8.3% increase in container throughput, and a 3.5% jump in sea cargo.

ALSO READ: Economy slightly grows in 2Q23: flash estimates

Infocomm, finance and insurance, and professional services also posted a 1.5% growth.

The rise in the services sector offset the 7.5% decline in the manufacturing sector, and the 6.6% easing in the construction sector.

“We maintain our full-year GDP growth forecast of +0.8%, which is at the lower end of (Ministry of Trade and Industry’s) forecast range of 0.5% to 2.5%. Manufacturing is expected to remain tepid in the second half due to weak external demand, with the modest export boost from China’s reopening insufficient to offset weakening demand from other regions,” Maybank said. 

“Services may remain supported by consumer-facing segments with the recovery in visitor arrivals, particularly in tourism-sensitive industries like accommodation and F&B. Nonetheless, we expect services growth to ease with fading reopening tailwinds and slowing visitor arrivals momentum,” it added.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!