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The Singapore economy grew at a pace of 3.8% year-on-year (y/y) in 2022, helped by the significant easing of pandemic-related restrictions. However, Singapore’s manufacturing sector faced increasing headwinds during the second half of 2022 due to the slowdown in the US, EU, and mainland China.
This has been mitigated by improving conditions in the service sector, notably, the rebound in international tourism, business conventions and air travel as border restrictions are easing across much of the Asia-Pacific region. The reopening of international borders in mainland China is expected to further boost the rebound in international tourism inflows.
Singapore economy shows some moderation
Singapore’s advance estimate for Fourth Quarter GDP for 2022 showed a moderation in the pace of growth to 2.2% y/y, compared with 4.2% y/y in the Third Quarter. On a…