The Asian Development Bank (ADB) projects that Singapore’s economic growth will accelerate to 2.4% in 2024 and 2.6% in 2025, driven by stronger exports and a resurgence in global electronics demand. This is a notable increase from the 1.1% growth expected in 2023. The Singapore Ministry of Trade and Industry forecasts a GDP growth range of 1% to 3% for 2024, aligning closely with the ADB’s optimistic outlook.
Inflation in Singapore is expected to moderate, with the ADB predicting a decrease to 3% in 2024 and further down to 2.2% in 2025. Factors contributing to this easing include a higher supply of housing units, reduced private transport costs due to lower oil prices, and stabilizing food prices. The appreciation of the Singapore dollar is also expected to help keep the inflation of imported goods low.
The growth momentum will benefit from an upturn in global demand for technology exports, particularly semiconductors, and the end of interest rate hikes in major economies. However, ADB identified certain risks that might affect its outlook, including potential delays in the US Federal Reserve’s interest rate cuts, economic slowdown in China, and surge in rice prices due to crop losses induced by El Niño.
(Source: The Straits News)