Singapore’s economy avoids recession in 2023, grows 1.2 per cent: PM Lee

For next year, growth is projected at 1-3 per cent but ‘much will depend on the external environment’ such as the Ukraine war and Israel-Gaza war

Singapore’s economic performance is often seen as a barometer of the global environment because of its reliance on international trade

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Singapore’s skyline. The affluent city state’s economic performance is often seen as a barometer of the global environment because of its reliance on international trade. Photo: Shutterstock

Published: 9:11pm, 31 Dec 2023

Singapore’s economy avoided a recession and expanded 1.2 per cent in 2023, Prime Minister Lee Hsien Loong said on Sunday, warning however that geopolitical risks will weigh on next year’s growth.

The affluent city state’s economic performance is often seen as a barometer of the global environment because of its reliance on international trade.

“We made 1.2 per cent growth this year, avoiding a recession,” Lee said in his New Year’s message.

For next year, growth is projected to come in at 1-3 per cent “but much will depend on the external environment”, he added, pointing to the continuing war in Ukraine and Israel’s conflict with Hamas.

Singapore’s Prime Minister Lee Hsien Loong gives a news conference on March 16. Singapore’s economy has been hurt by softer global demand for its exports, with the return of air travel after the Covid-19 pandemic boosting domestic growth. Photo: EPA-EFE

The economy has been hurt by softer global demand for its exports, with the return of air travel after the Covid-19 pandemic boosting domestic growth.

“For some years to come, we must expect the external environment to be less favourable to our security and prosperity. Geopolitical uncertainties will continue weighing on the global economy,” he said.