SINGAPORE: The Ministry of Trade and Industry (MTI) on Friday (Feb 14) released updated figures for Singapore's 2024 economic growth, revising the rate upward for both the last quarter of 2024 and the full year.
The ministry said Singapore's economy expanded by 4.4 per cent in 2024, up from an earlier estimate of 4 per cent. Both the estimate and the update beat the growth forecast of around 3.5 per cent.
For the fourth quarter, the figure was revised from 4.3 per cent to 5 per cent. On a quarter-on-quarter seasonally adjusted basis, the economy grew 0.5 per cent, slower than the 3 per cent expansion recorded in the third quarter.
"Taking into account the performance of the economy in the fourth quarter, GDP growth came in at 4.4 per cent for 2024 as a whole, faster than the 1.8 per cent expansion in 2023," MTI said in a press release.
Figures for the first three quarters of 2024 were also bumped up from the previous Economic Survey of Singapore.
Growth for the year was mainly driven by the wholesale trade, finance and insurance, and manufacturing sectors.
In particular, the electronics cluster of the manufacturing sector and the machinery, equipment and supplies segment of the wholesale trade sector grew robustly due to the upturn in the global electronics cycle.
Growth in the finance and insurance sector was driven by elevated trading activity as the sentiment in the global and local financial market shifted. Net fees and commissions among banks and fund managers saw strong growth, said MTI.
"By contrast, the retail trade and food and beverage services sectors contracted, partly due to locals shifting their spending to overseas travel destinations," the ministry said.
MTI said the gross domestic product growth forecast for 2025 remains at between 1 per cent and 3 per cent.
Major economies have remained resilient and Singapore's external demand outlook for this year is broadly unchanged, with overall GDP growth in its key trading partners expected to ease from 2024 levels.
In the US, GDP growth is expected to moderate, in line with projections that private consumption growth will taper as tightness in the labour market eases.
"There is a large cone of uncertainty surrounding the outlook of the US economy, with its trajectory depending on the policies of the new US administration," MTI added.
On Thursday in the US, US President Donald Trump announced plans for "reciprocal tariffs" that could hit both allies and competitors.
"Whatever countries charge the United States of America, we will charge them," Trump said.
In the Eurozone, MTI expects GDP growth to improve on the back of stronger consumption growth and a gradual recovery in investments as monetary policy becomes more accommodative.
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The ministry said Singapore's economy expanded by 4.4 per cent in 2024, up from an earlier estimate of 4 per cent. Both the estimate and the update beat the growth forecast of around 3.5 per cent.
For the fourth quarter, the figure was revised from 4.3 per cent to 5 per cent. On a quarter-on-quarter seasonally adjusted basis, the economy grew 0.5 per cent, slower than the 3 per cent expansion recorded in the third quarter.
"Taking into account the performance of the economy in the fourth quarter, GDP growth came in at 4.4 per cent for 2024 as a whole, faster than the 1.8 per cent expansion in 2023," MTI said in a press release.
Figures for the first three quarters of 2024 were also bumped up from the previous Economic Survey of Singapore.
Growth for the year was mainly driven by the wholesale trade, finance and insurance, and manufacturing sectors.
In particular, the electronics cluster of the manufacturing sector and the machinery, equipment and supplies segment of the wholesale trade sector grew robustly due to the upturn in the global electronics cycle.
Growth in the finance and insurance sector was driven by elevated trading activity as the sentiment in the global and local financial market shifted. Net fees and commissions among banks and fund managers saw strong growth, said MTI.
"By contrast, the retail trade and food and beverage services sectors contracted, partly due to locals shifting their spending to overseas travel destinations," the ministry said.
OUTLOOK FOR 2025
MTI said the gross domestic product growth forecast for 2025 remains at between 1 per cent and 3 per cent.
Major economies have remained resilient and Singapore's external demand outlook for this year is broadly unchanged, with overall GDP growth in its key trading partners expected to ease from 2024 levels.
In the US, GDP growth is expected to moderate, in line with projections that private consumption growth will taper as tightness in the labour market eases.
"There is a large cone of uncertainty surrounding the outlook of the US economy, with its trajectory depending on the policies of the new US administration," MTI added.
On Thursday in the US, US President Donald Trump announced plans for "reciprocal tariffs" that could hit both allies and competitors.
"Whatever countries charge the United States of America, we will charge them," Trump said.
In the Eurozone, MTI expects GDP growth to improve on the back of stronger consumption growth and a gradual recovery in investments as monetary policy becomes more accommodative.
Continue reading...