Singapore’s economy grew at a slower pace than expected in the first quarter, with a struggling manufacturing sector impacting tourism spending. Despite relying heavily on international trade, the city-state managed to expand its Gross Domestic Product (GDP) by 2.7 percent on-year, falling short of the projected 3.0 percent by economists.
The manufacturing sector, which is a key component of Singapore’s trade-dependent economy, experienced growth of 0.8 percent on-year but contracted by 2.9 percent from the previous quarter. The services sector, including accommodation and food services, experienced growth of 2.9 percent. International events such as Taylor Swift’s concerts, Coldplay’s performance, and the Singapore Airshow were credited with boosting tourism and entertainment-related industries in the city-state.
Economists believe that these events may lead to an upward adjustment in the overall first-quarter growth figures once fully accounted for. However, Singapore is still recovering from the impact of the pandemic and efforts are being made to keep inflation in check. The Monetary Authority of Singapore kept its monetary policy unchanged for a fourth consecutive time, emphasizing the need to manage inflation due to Singapore’s reliance on imported goods. Despite this challenge, Singapore’s economic performance continues to attract global attention as an indicator of broader economic trends.
Overall, it appears that despite some challenges in certain sectors like manufacturing and tourism spending
