Recession unlikely in 2023 after Singapore reports slight growth in Q2: economists

AFTER narrowly escaping a technical recession in the second quarter, private-sector economists believe Singapore’s risk of entering into a recession has receded, and that growth can be expected to pick up in the second half of the year.

HSBC economist Yun Liu told The Business Times: “After narrowly avoiding a technical recession in the second quarter, we do not believe recession is on the cards. We expect growth to turn modestly in H2 2023 on the back of trade stabilisation and an ongoing recovery in the travel-related sectors.”

DBS economist Chua Han Teng also does not expect Singapore to enter a technical recession in H2 2023, noting: “While global economic risks remain, modest improvements in business expectations inform our gradual H2 2023 recovery view.”