Singapore’s Economic Growth in 2024

Singapore’s economy grew 4.0% in 2024, marking its fastest annual pace since exiting the pandemic. This acceleration follows an expansion of 1.1% in 2023 and 3.8% in 2022, according to preliminary government data released on Thursday.

Gross Domestic Product (GDP) rose 4.3% in the fourth quarter compared to the previous year, surpassing a median forecast of 3.3% from a Reuters poll of economists.

On a quarter-on-quarter seasonally adjusted basis, GDP expanded 0.1% in the October-December period.

Chua Hak Bin, an economist at Maybank, stated, “Singapore is starting the year in a sweet spot, with growth on a high and inflation below 2%.”

He further noted that shifting supply chains to Southeast Asia and front-loading shipments ahead of potential higher U.S. tariffs would continue to drive manufacturing growth in the first half of 2025.

The trade ministry projected growth of 1.0% to 3.0% in 2025.

Selena Ling, an economist at OCBC, characterized the cautious forecast as realistic, citing current external headwinds, like Trump’s potential tariffs and the possible fading of front-loading activities. Nonetheless, she believes growth won’t decline significantly in 2025. “Assuming tariffs don’t impact Singapore directly, the 1% year-on-year floor should hold. My baseline is still about 2% given a higher base.”

In November, the annual inflation rate was 1.9%, the lowest in almost three years. This creates room for the central bank to ease monetary policy in its January review, though analysts think it may wait until later in 2025 to assess the impact of incoming President Donald Trump’s policies.

The Monetary Authority of Singapore maintained its policy in October as data indicated a strengthening pace of activity, with the next review scheduled before the end of the month.