SINGAPORE: Singapore on Friday (Nov 22) upgraded its economic growth forecast for 2024 to around 3.5 per cent, above the range of its previous prediction.
In August, the Ministry of Trade and Industry (MTI) narrowed the gross domestic product (GDP) growth forecast to 2 per cent to 3 per cent.
MTI upgraded the 2024 forecast after taking into account the “better-than-expected performance” of the Singapore economy in the first three quarters of the year, as well as the latest global and domestic situations.
For the first three quarters of the year, GDP growth averaged 3.8 per cent compared with the same period a year ago.
The ministry is expecting Singapore’s 2025 GDP growth to come in between 1 per cent and 3 per cent.
Singapore’s economy grew 5.4 per cent in the third quarter of this year, up from the advanced estimates of 4.1 per cent.
ECONOMIC OUTLOOK FOR 2024
On balance, Singapore’s overall external demand outlook is expected to remain resilient for the rest of 2024, said the ministry.
Coupled with the ongoing recovery in global electronics demand, this should support growth in Singapore’s manufacturing sector as well as outward-oriented services sectors such as the wholesale trade sector, added MTI.
However, the outlook for tourism-related and consumer-facing sectors such as accommodation, retail trade and food and beverage services has weakened given the slower-than-expected recovery in international visitor arrivals and sluggish tourist spending.
Major economies such as the US and Eurozone, as well as some regional economies, including Malaysia, performed better than projected in the third quarter of the year.
This was mainly due to stronger-than-expected consumption growth in these economies.
However, China’s GDP growth has continued to slow, in line with expectations over the same period.
For the rest of the year, US’ GDP growth is expected to moderate as consumption growth weakens with gradually easing labour market conditions.
GDP growth in the Eurozone is also projected to be modest, weighed down by subdued industrial activity and investments.
By contrast, China’s economy is projected to pick up slightly on the back of government support measures that were recently announced.
