Singapore’s financial progress beat authorities expectations final 12 months as companies rose regardless of a contraction in manufacturing.

Gross home product grew by 3.8% in 2022, beating official estimates of three.5%, however effectively beneath progress of seven.6% in 2021.

The town-state’s economic system grew 2.2% year-on-year within the fourth quarter of 2022, down from 4.2% progress within the earlier quarter, the Commerce and Business Ministry famous. . Adjusted for differences due to the season, the economic system grew by 0.2% quarter on quarter.

“We expect progress is prone to weaken additional,” mentioned Shivaan Tandon, rising Asia economist at Capital Economics. He mentioned Singapore’s exports are anticipated to fall if the worldwide economic system goes into recession in 2023.

“Excessive rates of interest, falling family financial savings and excessive inflation are prone to dampen home demand,” Tandon added. “We don’t count on additional financial tightening from the Financial Authority of Singapore.”

The Southeast Asian nation’s manufacturing sector shrank 3% year-on-year within the fourth quarter, a reversal from 1.4% progress within the earlier quarter.

“This was as a result of manufacturing contractions within the electronics, chemical and biomedical manufacturing clusters, which offset manufacturing expansions within the precision engineering, transportation engineering and common manufacturing clusters,” the report mentioned. ministry.

The development sector rose 10.4% year-on-year within the fourth quarter, following progress of seven.8% within the earlier quarter. “Private and non-private sector building output continued to recuperate,” the ministry mentioned.

Companies grew 2.3% year-on-year within the fourth quarter, a slower tempo than the 5.7% progress within the earlier quarter.