Singapore’s GDP Forecast to Grow by 2.4% in 2024

April 2024

The Monetary Authority of Singapore’s (MAS) recent survey forecasts a 2024 economic growth rate of 2.4% for Singapore, slightly up from the previous estimate of 2.3%, and anticipates an increase to 2.5% in 2025. The revised forecast also lowers headline inflation predictions from 3.4% to 3.1% for the current year, with the headline and MAS core inflation expected to decrease to 2% in 2025. The MAS core inflation, which excludes accommodation and private transport costs, remains stable at 3%.

Significant contributions to this growth are expected from key sectors like manufacturing, which is forecasted to grow by 4% in 2024, up from 2.3%. However, the survey indicates lowered growth expectations for the wholesale, retail trade, and accommodation and food services sectors. Despite these sectorial revisions, the overall economic expansion remains robust, supported by increased manufacturing, finance, insurance, and construction activities.

The survey also highlighted a unique economic boost termed ‘Swiftonomics’, attributable to Taylor Swift’s Eras Tour, which added approximately SGD 300 million to SGD 400 million (USD 220 million to USD 293 million) to the country’s GDP in the first quarter. Following this event, economists predict a 2.9% GDP growth for the first quarter of 2024. Amid these positive growth indicators, economists do not anticipate changes to Singapore’s monetary policy in the upcoming April 2024 review, which continues to manage the economy through exchange rate adjustments rather than traditional interest rate settings.

(Source: CNBC)

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