Singapore's Economy Expands By 4.4 Pct In 2024, Up From Earlier Estimates

SINGAPORE, Feb 14 (Bernama) -- Singapore's economy expanded by 4.4 per cent in 2024, up from an earlier 4.0 per cent advance estimate, according to the Trade and Industry Ministry (MTI) today.

The growth is faster than the 1.8 per cent expansion in 2023, mainly driven by wholesale trade, finance and insurance, and manufacturing sectors.

“In particular, the electronics cluster of the manufacturing sector and machinery, equipment and supplies segment of the wholesale trade sector grew robustly on account of the upturn in the global electronics cycle,” MTI said in a statement following the release of the Economic Survey of Singapore 2024 report.

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The economy expanded by 5.0 per cent year-on-year (y-o-y) in the fourth quarter of 2024 (4Q 2024), moderating from 3Q’s 5.7 per cent.

It maintains 2025 GDP growth forecast at 1.0 to 3.0 per cent, taking into account the external and domestic economic environment, and barring the materialisation of downside risks.

MTI said since the Economic Survey of Singapore in November 2024, major economies have remained resilient, performing largely in line with 4Q 2024 expectations amid rising global economic uncertainties.

The city state’s 2025 external demand outlook remains broadly unchanged, with overall GDP growth in its key trading partners expected to ease from 2024 levels.

Among the advanced economies, US GDP growth is projected to moderate in 2025, as private consumption growth is expected to taper for the year in tandem with easing tightness in the labour market.

“Nonetheless, there is a large cone of uncertainty surrounding US’ economic outlook, with its trajectory depending on the policies of the new administration,” it added.

 In contrast, GDP growth in the eurozone is likely to improve on the back of stronger consumption growth and a gradual recovery in investments as monetary policy becomes more accommodative.

In Asia, China’s GDP growth is expected to moderate on account of a slowdown in merchandise exports and investment growth due to tariff hikes and industrial overcapacity, respectively.

MTI said growth in key Southeast Asian economies should remain steady, supported by improving domestic demand and a sustained recovery in tourism demand. 

It said uncertainties in the global economy remain significant, with the risks tilted to the downside.

Ongoing trade frictions among major economies, alongside lingering risks of escalation in geopolitical conflicts, could lead to higher production costs, as well as greater global economic policy uncertainty.

It noted that the disruptions to the global disinflation process could lead to tighter financial conditions for longer, potentially triggering latent vulnerabilities in banking and financial systems. 

-- BERNAMA