Singapore's economy misses forecasts with 2.7 percent growth | business and economy

The performance of city-states is closely watched as a barometer of global economic conditions.

Singapore's economy grew slower than expected in the first quarter as a struggling manufacturing sector weighed on tourism spending from events such as Taylor Swift's concerts.

The city-state's economic performance is often viewed as a barometer of the global environment due to its dependence on international trade.

Gross domestic product (GDP) grew 2.7 percent from a year earlier, the Ministry of Trade and Industry said on Friday, faster than the previous three months but weaker than the 3.0 forecast in a Bloomberg survey of economists Percent.

It only grew by 0.1 percent compared to the previous quarter.

The advance estimates are largely based on data from January and February and may be revised upon presentation of the March figures.

Manufacturing, a pillar of the trade-dependent economy, rose 0.8 percent from a year ago and contracted 2.9 percent from October to December.

The services sector, which includes accommodation and food services, grew by 2.9 percent.

“In all likelihood, the numerous concerts that attracted large numbers of international visitors to Singapore's shores have provided a temporal boost to consumer-facing industries, namely hospitality and entertainment activities,” said Selena Ling, chief economist at banking group OCBC.

Swift only performed in Singapore in March for the Southeast Asian leg of her Eras tour, while Coldplay played in January and the Singapore Airshow, the largest in Asia, took place in February.

Veteran economist Song Seng Wun said he expects an “upward adjustment” in overall growth in the first quarter once the impact of Swift's concerts is fully accounted for.

There could also be “spillover effects” from spending at the Singapore Airshow in March, added Song of financial services firm CGS International Singapore.

“The bottom line is that the economy is still recovering from the pandemic,” he told AFP.

In a separate announcement, central bank Monetary Authority of Singapore left its monetary policy unchanged for the fourth straight day, saying it needed to keep inflation under control.

Since the city-state imports most of its needs, it addresses imported inflation by allowing a stronger Singapore dollar.