Economic Growth Forecast of Singapore in 2024 Gets Range Upgrade
Singapore has exceeded its economic growth forecast for 2024, as recently reported. The previous forecast of 1%-3% has been upgraded to 2%-3%, as Singapore expects its manufacturing sector to recover gradually.
The Trade and Industry Ministry stressed Singapore’s economic growth forecast by stressing the strategic importance of its electronics cluster. The ministry anticipates a gradual recovery in the manufacturing sector during the second half of the year, spearheaded by strong demand for smartphones, PCs, and AI-related chips from this electronics cluster.
As it relies on foreign trade, many countries often use Singapore’s economic performance to indicate global financial conditions.
From April to June, Singapore’s GDP grew at 2.9%, less than the previous quarter’s growth rate of 3.0%; this data was updated and revised from varying sources after a preliminary estimate made by the ministry last month.
The ministry has revealed that dwindling consumption reduced demand for essential exports from the US, among other major markets. At the same time, though, slower growth is expected from China’s economy “in the second half.”
However, during that time, some growth in the eurozone GDP is anticipated. Simultaneously, significant Southeast Asian countries should experience slight expansion as well. In the meantime, however, the ministry says that the forecast for foreign demand for Singapore will remain steady until the end of the year.
Despite optimistic predictions for economic growth, Singapore continues to be cautious. Challenges include geopolitical trade tensions and stricter financial circumstances, which could result in market uncertainties or hidden weaknesses within banks and other financial institutions.
In the second quarter, manufacturing, an essential cornerstone of the economy, tumbled by 1.0 per cent compared to a year earlier owing to poor pharmaceutical performance. However, this was less than the 1.7 per cent fall recorded in the first quarter.
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