SINGAPORE’S ECONOMY GROWS 4.0% IN 2024, FASTER THAN EXPECTED
Singapore’s economy expanded 4.0% in 2024, the fastest annual pace since exiting the pandemic, according to preliminary government data released on Thursday. The growth rate exceeded a median forecast of 3.3% in a Reuters poll of economists.
In the fourth quarter, the Gross Domestic Product (GDP) rose 4.3% from a year earlier, exceeding expectations. On a quarter-on-quarter seasonally adjusted basis, GDP expanded 0.1% in the October-December period.
Maybank economist Chua Hak Bin said Singapore is starting the year in a sweet spot, with growth on a high and inflation at below 2%. Shifting supply chains to Southeast Asia and front-loading of shipments ahead of potential higher US tariffs will continue to drive manufacturing growth in the first half of 2025.
OCBC economist Selena Ling noted that the trade ministry’s forecast of 1.0% to 3.0% growth in 2025 is realistic given external headwinds and the potential impact of Trump 2.0 tariffs and the fading of front-loading activities. However, she believes growth is unlikely to slow too significantly in 2025, assuming tariffs do not have a direct impact on Singapore, and the 1% year-on-year floor should hold.
The annual inflation rate in November was 1.9%, the lowest in almost three years, providing room for the central bank to ease monetary policy at its January review. However, analysts believe it may wait until later in 2025 to assess the impact of incoming US President Donald Trump’s policies. The Monetary Authority of Singapore held policy steady at its October review, citing data showing the pace of activity picking up, and its next review is due before the end of the month.