SINGAPORE’s economy grew by 4.4% in 2024, surpassing both initial forecasts and earlier estimates, according to updated data released by the Ministry of Trade and Industry (MTI) on February 14.
This growth outpaced January’s estimate of 4%, which already exceeded expectations of around 3.5%.
The revised figure for the fourth quarter showed an even stronger performance than initially projected, with growth upgraded from 4.3% to 5%.
CAN reported that on a quarter-on-quarter seasonally adjusted basis, the economy expanded by 0.5%, a slowdown compared to the 3% growth recorded in the previous quarter.
The 2024 growth marks a significant acceleration from the 1.8% expansion in 2023, reflecting stronger momentum in various sectors.
MTI noted that the upturn was primarily driven by the wholesale trade, finance and insurance, and manufacturing industries. In particular, Singapore’s electronics cluster and machinery, equipment, and supplies within wholesale trade experienced robust growth, fuelled by a positive global electronics cycle.
The finance and insurance sector also saw an uptick, driven by heightened trading activity, with banks and fund managers benefiting from strong net fees and commissions.
On the downside, the retail trade and food and beverage services sectors faced contractions, with local consumers shifting their spending toward overseas travel destinations.
2025 Economic Outlook: Modest Growth Expected
Looking ahead, MTI maintained its GDP growth forecast for 2025 at between 1% and 3%. While major global economies remain resilient, the forecast anticipates a slight cooling of Singapore’s external demand, with the growth of key trading partners expected to slow compared to 2024.
In the United States, GDP growth is projected to moderate, with a cooling in private consumption as the labour market tightens.
MTI cautioned that there is significant uncertainty surrounding the US economy’s outlook, noting that its trajectory will depend heavily on the policies of the new US administration.
Recent statements from US President Donald Trump about potential "reciprocal tariffs" on both allies and competitors have added further complexity to the outlook.
The Eurozone is expected to see improved growth driven by stronger consumption and a gradual recovery in investment, as the region's monetary policy becomes more accommodative.
On the other hand, China's economy is forecast to slow, with exports hit by tariff hikes and limited investment growth due to industrial overcapacity.
Southeast Asia, however, is projected to experience steady growth, underpinned by improving domestic demand and a continued recovery in tourism.
Non-Oil Domestic Exports Show Modest Recovery
In a separate report, Enterprise Singapore revealed that non-oil domestic exports (NODX), a key indicator of the nation’s export performance, grew by 0.2% in 2024, reversing the sharp 13.1% decline recorded in 2023. This growth was driven primarily by higher shipments of electronic products, which rose by 8.2% in 2024, following a significant contraction of 19.7% the year before.
However, non-electronic NODX saw a decline of 1.9%, although this was a smaller drop compared to the previous year’s 11.1% decline. For the fourth quarter of 2024, NODX rose by 2.4% compared to the same period in 2023, although this was a slowdown from the 9% growth seen in the third quarter.
The outlook for Singapore in 2025 remains cautious, with a modest growth forecast and a global economic environment marked by uncertainty.
However, the nation’s resilient sectors and ongoing adjustments to external factors could help sustain the momentum in the year ahead. - February 14, 2025
Singapore, economy, growth
