Singapore’s Economy Sees Slight Growth in Q4, Annual Growth Remains Above 4%
Singapore’s economy barely grew in the fourth quarter, as weak export demand and slowing growth in major market China continued to impact the island state. According to government data released on Thursday, the economy rose 0.1% in the three months to December 31, a significant slowdown from the 3.2% growth seen in the prior quarter.
The country’s manufacturing sector, which has been grappling with sustained headwinds from slowing overseas demand, particularly in the electronics industry, saw a contraction of 4.3% in the fourth quarter. Despite this, Singapore’s financial sector remained robust.
Singapore’s gross domestic product (GDP) grew 4% in 2024, exceeding the prime minister’s prediction of over 4% in his New Year’s address on Wednesday. The country is, however, facing above-average inflation and rising housing prices, which have impacted consumer spending.
Singapore’s key indicator, the exports of goods, steadily declined through most of 2024. The country is expected to continue grappling with these challenges in the coming year.