Singapore Successfully Escaped Economic Recession in 2023. Singapore’s economy managed to escape the brink of recession in 2023. However, Prime Minister Lee Hsien Loong warned of global conditions that were “problematic” and could weigh on the country’s growth and security.
Lee said that Singapore’s gross domestic product (GDP) had increased 1.2% (year-on-year/yoy). This realization recorded a higher figure than the Ministry of Trade’s estimate for November 2023, which projected growth of 1%. Meanwhile, next year, Lee reiterated that the country’s official economic growth projection is 1% to 3%.
According to him, the Russia vs Ukraine War is also at a strategic stalemate with no resolution in sight and highlights the global irritation and anger towards human suffering in the Israel vs Hamas conflict.
Under Lee’s leadership, Singapore’s per capita income has increased from around US$27,600 in 2004 to US$87,880 in 2023 or around IDR 1 billion. This achievement makes Singapore one of the richest countries in the world.
Singapore’s prospects also depend on a durable recovery in global trade, given that exports are equivalent to more than one and a half times the size of Singapore’s economy.
Although export performance experienced growth for the first time on November 14 2023, this increase was largely due to the low number of exports or lower baseline last year. According to Lee, even if the economy grows in 2023, households will still feel the pressure of higher living costs even though inflation is gradually easing.
Singapore Successfully Escaped Economic Recession in 2023. Controlling inflation has become a top priority for policymakers since Singapore reopened after the Covid-19 pandemic. The government has announced billions of dollars in support measures and the central bank is keeping the Singapore dollar strong to ease imported inflation.
A 1 percentage point increase in the goods and services tax to 9% from January 1 2024 will add to price pressures, although the prime minister said the additional revenue would help the government pay for rising health care costs.
