Singapore avoids recession in 2023, aims for optimistic growth amid leadership change
Singapore Prime Minister Lee Hsien Loong revealed in his New Year message that the city-state had successfully avoided a recession in 2023. Gross domestic product (GDP) growth rate is 1.2%. This figure comfortably exceeded the trade ministry’s initial forecast of an expansion of around 1%, and shed a ray of optimism on an extremely turbulent global economic situation.
Anticipate future challenges
However, the Prime Minister did not hesitate to paint a realistic picture of the potential hurdles ahead. He cited a “troubled” international environment that he expects to cast a shadow on the country’s economic growth and security. Despite these challenges, his official growth forecast for Singapore in 2024 remains positive. Growth rate is 1% to 3%.
Economic performance amid global uncertainty
Although Singapore’s economy experienced a slowdown in the October-December period, its year-on-year growth rate was 1.9%, up from 1.1% in the previous year. Despite international challenges, this resilience is attributed to a buffer against rising costs of living and a relentless pursuit of economic stability and growth.
Preparing for leadership transition
Prime Minister Lee Hsien Loong also took the opportunity to announce the upcoming leadership changes with his deputy prime minister. Lawrence Wong is scheduled to become prime minister in 2024. He emphasized the importance of this transition and called on Singaporeans to extend their support to the next leader. The new team will focus on upskilling the workforce, providing affordable housing and overhauling the healthcare system, while solving global issues that can impact Singapore’s economy.