03.02.202308:13:00UTC+00Singapore Retail Sales Growth Accelerates In December

Singapore retail sales grew at faster pace in December despite higher inflation, figures published by the Department of Statistics revealed on Friday.

Retail sales increased 7.4 percent year-on-year in December, following November's 6.5 percent growth.

Food and alcohol sales registered the biggest annual increase of 37.4 percent. This was followed by 23.0 percent increase in wearing apparel and footwear sales.

Sales excluding motor vehicles posted a faster increase of 9.5 percent after a 9.0 percent rise. Motor vehicle sales declined 10.3 percent annually.

On a monthly basis, retail sales gained 1.3 percent, partially offsetting the 3.6 percent fall in November.

ING economist Nicholas Mapa said there would be further moderation in retail sales in early 2023 as prices remain high and economic activity takes a hit from the projected global slowdown.

Moreover, the economist said the implementation of the goods and services taxes at the start of 2023 should add more downward pressure on sales. However, the potential return of tourists from mainland China could be an offsetting factor if they start to arrive, Mapa added.