Singapore's Manufacturing Economy sees higher growth in Q4 of 2023

Singapore's economy gained traction in the fourth quarter of 2023, thanks to a rebound in the manufacturing sector and continued growth in construction output. According to preliminary estimates released by the Ministry of Trade and Industry (MTI) on Jan 2, the economy grew 2.8 percent year on year in the fourth quarter, faster than the previous quarter's 1.0 percent growth.

On a seasonally adjusted quarterly basis, the economy expanded by 1.7 percent, extending the previous quarter's 1.3 percent expansion. The fourth-quarter expansion was driven by expansions in the manufacturing and construction sectors. According to MTI, the manufacturing sector has returned to growth after three quarters of contraction.

The advance GDP estimates for the fourth quarter are based primarily on data from October and November, the quarter's first two months. According to MTI, they are intended to provide an early indication of GDP growth in the quarter and are subject to revision when more comprehensive data becomes available.

The economy expanded by 1.2 percent in 2023, slowing from 3.6 percent growth in 2022. The manufacturing sector expanded by 3.2% year on year in the fourth quarter of 2023, reversing the previous quarter's contraction of 4.7%.

“Growth in the sector was due to output expansions across all clusters, with the exception of the precision engineering cluster,” MTI said.

On a quarter-on-quarter seasonally-adjusted basis, the manufacturing sector grew by 9.0 per cent in the fourth quarter, accelerating from the 0.3 per cent expansion in the third quarter. Meanwhile, the construction sector grew by 9.1 per cent year-on-year in the fourth quarter, faster than the 6.2 per cent growth in the previous quarter.