Singapore Economy Can Increase By Up to 3% in 2024: Reports
Singapore’s economy anticipates a growth ranging from 1% to 3% in 2024. A recent report by the Ministry of Trade and Industry (MTI) reveals the city-state’s robust third-quarter gross domestic product (GDP) growth of 1.1% year-on-year, surpassing both advance estimates and analysts’ expectations.
Promising Indicators for Singapore Economy for 2024
Analysts attribute the third-quarter GDP uptick to stabilising business sentiments, hinting at a potential recovery as Singapore heads into 2024. On a quarter-on-quarter basis, the seasonally-adjusted GDP soared by 1.4%, marking a significant acceleration from the previous quarter’s 0.1% expansion.
Despite challenges in manufacturing and trade-related sectors throughout 2023, signs suggest that the downturn could be reaching its conclusion. The ongoing recovery in air travel and tourism is expected to buoy sectors such as air transport and accommodation, while resilient labour market conditions continue to support consumer-facing sectors like retail trade and food and beverage services.
Economic Pivot: From Services to Goods
In a strategic shift, MTI foresees a potential “rebalancing” from services to goods in 2024 as the post-pandemic surge in demand for services subsides. The normalisation of inventory levels should fuel a global manufacturing turnaround. This will particularly benefit Singapore’s electronics and precision engineering clusters.
While acknowledging challenges such as the moderation of growth in the U.S., the eurozone, and China, MTI remains optimistic about Singapore’s economic outlook. The finance and insurance sector could also witness a modest recovery if global interest rates start to moderate in 2024.
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