Slight growth in Singapore's economy in Q1 2023 on a year-on-year basis

The construction sector grew by 8.5% yoy in Q1 2023. This growth was made possible by expansions in both public and private sector construction output.  

Based on advance estimates for the first quarter of 2023 (Q1 2023), Singapore's economy grew by 0.1% year-on-year (yoy), i.e. compared to Q1 2022, which is slower than the 2.1% yoy growth recorded in Q4 2022. As such, on a quarter-on-quarter (qoq) seasonally-adjusted basis, the economy contracted by 0.7% per cent, i.e. compared to Q1 2022, which marks a reversal from the 0.1% growth seen in Q4 2022 when compared to Q3 2022.

As these are advance GDP estimates for Q1 2023, they are computed largely from data in the first two months of the quarter (i.e., January and February 2023). They are intended as an early indication of GDP growth in the quarter and are subject to revision when more comprehensive data become available.

Sectoral performance

The graphic above shows the percentage change in GDP value measured year-on-year - advance estimates (as of Q1 2023), on the basis of sectoral performance. Further explanation is shared by Singapore's Ministry of Trade and Industry (MTI) in its release, and listed below.

The manufacturing sector contracted by 6% yoy in Q1 2023, worsening from the 2.6% contraction in Q4 2022. The weak performance of the sector was attributed to output contractions across all the manufacturing clusters, except for the transport engineering cluster.

The construction sector grew by 8.5% yoy in Q1 2023, extending its 10% growth in Q4 2022. Growth during the quarter was supported by expansions in both public and private sector construction output. Nonetheless, the value-added of the sector remained 21.3% per cent below its pre-pandemic (i.e., Q1 2019) level. 

Among the services sectors, the wholesale & retail trade and transportation & storage sectors collectively contracted by 1.1% yoy in Q1 2023, a reversal from the 2.4% growth in Q4 2022. Within the group, the wholesale trade sector shrank in tandem with a decline in Singapore’s merchandise exports. By contrast, the retail trade and transportation & storage sectors expanded, with the latter supported by robust growth in the air transport segment.

The group of sectors comprising the information & communications, finance & insurance and professional services sectors grew by 1.9% yoy in Q1 2023, moderating from the 2.5% growth in Q4 2022. All sectors within the group, except for the finance & insurance sector, expanded during the quarter. Growth in the information & communications sector was supported by continued strong demand for IT and digital solutions, while that in the professional services sector was mainly driven by the other professional, scientific & technical services and architectural & engineering, technical testing & analysis segments. Meanwhile, the finance & insurance sector contracted largely on account of the weak performance of the banking and insurance segments.

For further information, the preliminary GDP estimates for Q1 2023 will be released in the Economic Survey of Singapore in May 2023.

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