Singapore's economy experienced robust growth in 2024, exceeding initial projections and demonstrating resilience despite global economic uncertainties. The Ministry of Trade and Industry (MTI) attributed the positive performance to strong contributions from manufacturing, finance & insurance, and wholesale trade sectors. While maintaining a cautious outlook for 2025, the MTI expressed optimism about the manufacturing sector's prospects due to sustained global demand for semiconductor chips.
Singapore's economy demonstrated robust growth in 2024, surpassing both forecasts and advance estimates with an expansion of 4.4 percent, according to a statement released by the Ministry of Trade and Industry (MTI) on Friday, February 14th. This positive performance outpaces the 4 percent growth projected in advance estimates last month. For 2025, the MTI forecasts GDP growth to fall within a range of 1 percent to 3 percent.
The 2024 growth was primarily fueled by the wholesale trade, finance & insurance, and manufacturing sectors. The manufacturing sector, particularly the electronics cluster, witnessed a significant surge due to favorable global electronics cycle trends. The finance & insurance sectors also expanded by 6.8 percent year-on-year in 2024, a notable increase from the 3.1 percent growth recorded in 2023. This expansion was largely attributed to heightened trading activity and increased credit intermediation within banking.Conversely, consumer-facing sectors such as retail and F&B experienced contraction, partly attributed to local spending shifting towards overseas destinations. Despite the strong 2024 performance, the MTI maintained its 2025 GDP forecast between 1 percent and 3 percent. This cautious outlook stems from persistent uncertainties in the global economy, with risks leaning towards a downward trajectory. The MTI highlighted potential disruptions to the global disinflation process as a key risk factor, as this could lead to stricter financial conditions impacting banking and financial systems. However, the MTI expressed optimism about the manufacturing sector, anticipating continued growth driven by robust global demand for semiconductor chips. Furthermore, strong demand for cross-border transactions in the region is expected to bolster the information and communications sector. Dr. Beh Swan Gin, MTI's Permanent Secretary, emphasized the ministry's commitment to closely monitor global developments and adjust the forecast accordingly throughout the year
SINGAPORE ECONOMY GDP GROWTH MANUFACTURING FINANCE & INSURANCE GLOBAL ECONOMIC UNCERTAINTIES
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