Bank of Singapore survey of economists sees GDP growth at 3% in 2023

A view of the Singapore city skyline
FILE PHOTO: A view of the city skyline in Singapore, October 25, 2021. REUTERS/Edgar Su

March 9, 2022

SINGAPORE (Reuters) – Singapore’s economy is expected to grow 3% in 2023 as the city-state gradually reopens its borders to international travel, a survey of economists conducted by the city-state’s central bank showed on Wednesday.

The most frequently cited downside risk to Singapore’s growth prospects has been a stronger-than-expected rise in inflation and an associated acceleration in monetary tightening by leading central banks, according to the Monetary Authority of Singapore’s (MAS) survey of 23 economists.

Trade-dependent Singapore has recently experienced near-decade-high inflation rates, driven mainly by higher food and energy prices.

Core inflation — the central bank’s preferred price measure — is expected to come in at 2.7% this year, according to the survey, in line with the central bank’s forecast and up from 1.8% in the last survey in December.

According to the survey, overall prices are expected to rise 3.6% this year, slightly higher than the central bank’s forecast of 2.5% to 3.5%.

Both headline prices and core inflation are likely to ease in 2023, the survey says.

Singapore is yet to release its official gross domestic product (GDP) forecast for 2023.

The survey showed that Singapore’s economy is expected to grow by 4% this year, in line with an official forecast of 3% to 5%.

For the first quarter of this year, economists expect GDP growth of 3.7%.

The MAS tightened monetary policy stances in January this year, in its first out-of-cycle move in seven years, as global supply constraints and buoyant economic demand increased inflationary pressures across the region.

The poll on the views of 23 economists “who are closely monitoring Singapore’s economy” was conducted after the outbreak of hostilities in Ukraine on Feb. 24, MAS said.

(Reporting by Chen Lin in Singapore; Editing by Ed Davies) Bank of Singapore survey of economists sees GDP growth at 3% in 2023

Caroline Bleakley

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