The performance of city-states is attracting attention as a barometer of the global economic situation.
Singapore's economy slowed more than expected in the first quarter as a weak manufacturing sector weighed on tourism spending from events such as a Taylor Swift concert.
The city-state's economic performance is often seen as a barometer of the global environment due to its dependence on international trade.
The Department of Trade and Industry said Friday that gross domestic product (GDP) expanded 2.7% from a year earlier, faster than in the previous three months but slower than the 3.0% expected in a Bloomberg survey of economists. .
Compared to the previous quarter, the increase was only 0.1%.
Advance forecasts are primarily calculated based on data from January and February and may be revised once March statistics are released.
The manufacturing industry, the mainstay of a trade-dependent economy, rose 0.8% year-on-year from October to December, contracting 2.9%.
The service sector, which includes accommodation and food and beverages, increased by 2.9%.
Serena Lin, chief economist at banking group OCBC, said: “The large number of concerts that attracted large numbers of foreign tourists to Singapore's coast may have temporarily boosted consumer industries, including hospitality and entertainment-related activity. “It's very sexual,” he said. .
Swift only performed in Singapore in March as part of her Southeast Asia tour, while Coldplay performed in January and the Singapore Air Show, Asia's largest, was held in February.
Veteran economist Song Seng-woong said he expected the overall growth rate for the first quarter to be “revised upward” once the full impact of Swift's concert is taken into account.
Song, from financial services firm CGS International Singapore, added that spending from the Singapore Airshow could also have a “spill-over effect” into March.
“The bottom line is that the economy is still recovering after the pandemic,” he told AFP.
In a separate announcement, the Monetary Authority of Singapore's central bank left monetary policy unchanged for the fourth consecutive time, citing the need to contain inflation.
The city-state imports most of its needs, so it combats import inflation by allowing the Singapore dollar to appreciate.