Singapore economy growth beats forecast in Q3

SINGAPORE, Nov 22 (AFP): Singapore's economy grew more than expected in the third quarter, data showed Wednesday, while officials narrowed their full-year forecast owing to subdued demand for its exports in key markets including the United States and China.
The 1.1 per cent expansion in July-September was driven by the construction industry and services sector, including tourism.
The reading from the trade ministry was better than the 0.8 per cent growth expected and well up from the previous three months.
Officials said they saw the economy growing 1.0 per cent throughout 2023, against the 0.5-1.5 per cent previously estimated.
Since its last forecast in August, the US economy had performed better, the ministry said, but warned inflation-fighting interest rate hikes would weigh on it for the rest of the year.
"However, for the rest of the year, growth in the US and eurozone is projected to moderate due to the cumulative effects of monetary policy tightening," it said.
"Likewise, China's growth is likely to slow further amidst ongoing weaknesses in its property sector and domestic consumption, as well as subdued external demand."
The ministry added that global demand for electronics, one of Singapore's main exports, "remains sluggish given elevated inventory levels, although there are signs that the downturn may be bottoming".
Continued growth in tourism arrivals is expected to support aviation and tourism-related businesses, it said.