© Reuters. FILE PHOTO: Container cranes are pictured on the Port of Singapore, June 10, 2018. REUTERS/Feline Lim/File Photograph
SINGAPORE (Reuters) -Singapore’s economic system expanded lower than initially estimated within the second quarter however averted a recession, official information confirmed on Friday.
Town-state was not anticipating a technical recession this yr, a commerce ministry official advised a press convention, as gross home product (GDP) expanded a seasonally-adjusted 0.1% quarter-on-quarter in April to June, slower than 0.3% progress seen within the authorities’s advance estimate.
On an annual foundation, the economic system expanded 0.5%, in contrast with the advance estimate of 0.7% and first quarter progress of 0.4%, the Ministry of Commerce and Business mentioned.
“Singapore’s exterior demand outlook for the remainder of the yr stays weak,” MTI mentioned in an announcement, including that it has narrowed its GDP progress forecast to 0.5% to 1.5% from 0.5% to 2.5% for this yr, down from 3.6% in 2022.
Industrial output and exports have fallen for 9 straight months, elevating the chance of a chronic downturn.
Inflation had remained elevated within the first half of this yr, and a few easing was seen in June’s figures, in step with the authorities’ expectations that core costs ought to reasonable additional within the second half.
Development and inflation developments had been inside expectations, a central financial institution official mentioned on Friday, including the Financial Authority of Singapore’s coverage stance was “applicable”.
MAS left its coverage settings unchanged in April, after tightening 5 instances in a row since October 2021, reflecting considerations over the city-state’s progress outlook.