Transport engineering was up 14.5% year over year in April, aerospace engineering was up 16.1% and tourism had bounced back, with the accommodation segment up 21.9%. However, Singapore’s economic cloud enjoys several silver linings. Across Asia, commodity prices have been declining, which is challenging for export-dependent Singapore. Inflation remains worryingly high at 5.7%, which may trigger further interest rate increases from the Monetary Authority of Singapore. Exports of electronics to China have remained frustratingly weak, down 23% year over year, as the recovery of the Chinese economy has been unexpectedly lackluster. Manufacturing output in the first quarter contracted 4.8% year over year given declines in the electronics, chemicals and biomedical industries. Singapore’s economy has shown signs of slowing in early 2023. Flexible in the face of geopolitical rigidity, able to pivot seamlessly between trading partners, and solicitous of its larger neighbors, Singapore remains resilient. Singapore’s GDP grew 8.9% year over year in 2021 and rose 3.6% in 2022, while much of Asia experienced an economic contraction brought on by COVID-19-era lockdowns. But tiny Singapore has turned its size, educated population and natural deepwater harbor into a permanent advantage. Were it part of mainland China, Singapore would not rank among the 50 largest cities by population, according to some estimates. The country comprises an archipelago of small, humid islands off the southern tip of Malaysia with a population of 5 million people. Singapore Slows Down, But Resilience Remainsīy some metrics, Singapore should be irrelevant. Start every business day with our analyses of the most pressing developments affecting markets today, alongside a curated selection of our latest and most important insights on the global economy.

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