SINGAPORE — Despite these uncertain times, Singapore’s economy should improve this year, said Prime Minister Lee Hsien Loong on Friday (Feb 9).

While growth last year was not as high as the government would have liked, 2023 was nevertheless a "steady" year in which Singapore avoided a recession.

The economy grew by 1.2 per cent in 2023, down from the 3.6 per cent growth in 2022. Meanwhile core inflation averaged 4.2 per cent in 2023, higher than 4.1 per cent in 2022.

“We are not sure exactly how it (2024) will turn out because it depends on America, whether they manage to cool down their inflation or not and avoid a recession. It depends what happens in China, whether the economy revives strongly or not. It depends also on the electronics industry, which is showing signs of revival and we are experiencing it,” said Mr Lee.

“But as of now, from what we can tell, it looks like this year ought to be stronger than last year. And from the point of view of Singaporeans, of companies, and of course, the government, we should be happy with that.”

Mr Lee spoke to reporters after a Chinese New Year visit to Ng Teng Fong General Hospital, where he showed his appreciation for healthcare workers.

In his official Chinese New Year message, possibly his last as Prime Minister, Mr Lee encouraged Singaporeans to have more children, noting that many Chinese families consider children born in the Year of the Dragon to be auspicious.

Singapore's resident total fertility rate hit a low of 1.04 in 2022, dipping below the previous record of 1.1 in 2020 and 2021's figure of 1.12.

Mr Lee hinted that more government support for families aspiring to have children could be on the way.

He said that over the last few years, the government has made great strides in supporting young couples, in terms of preschools, flexi-work arrangements, baby bonuses and family leave.

“We have some ideas to do more on all these counts. I think Deputy Prime Minister Lawrence Wong and his team have been working hard at it. We have discussed some of these ideas — I think I should leave him to announce good news,” said Mr Lee.

Mr Wong, who is also the Finance Minister, will deliver the 2024 Budget statement in a week's time, on Feb 16.

“Dragon year usually is good news, so I hope that the possibility of having a dragon baby will encourage more couples to give it a go,” Mr Lee added.

“You will not regret it.” CNA