Economists ‘cautiously optimistic’ about Singapore economy in 2023, banking on China’s reopening

CAUTIOUS optimism appears to be the general sentiment among economists, many of whom are hopeful China’s reopening would provide a lift for the region, even as Singapore’s 2022 growth numbers missed the mark by a notch on Monday (Feb 13).

“We are expecting a ‘half-full’, rather than a ‘half-empty’ economy, as China’s reopening will cushion the impact from the slowdown in the US and EU,” Maybank economists Chua Hak Bin and Lee Ju Ye said.

“The inverted US yield curve is pointing to a high 30 per cent probability of a recession in Singapore, but we think China’s reopening will reduce the odds of a recession and ‘decouple’ the overall economy from the manufacturing downturn,” they added.