Singapore economy to grow with disinflation and robust travel recovery

Disinflation and improving labour markets may boost spending on discretionary items such as electronics and furniture.

Singapore is expected to benefit from easing inflation and reduced monetary policy pressures, with inflation levels projected to stabilise at approximately 2-3%, Mastercard said.

According to its report, Mastercard noted that disinflation and improving labour markets are predicted to boost spending on discretionary items such as electronics and furniture. Experiences like major events and travel continue to be prioritised by consumers.

Travel recovery remains robust but below pre-pandemic levels, with consumers favouring affordable alternatives for experiences and destinations.

Mastercard also noted that as global policies evolve, potential trade disruptions and shifts in monetary strategies in major economies may influence Singapore’s economic trajectory.

Additionally, the report emphasised trends in pricing, migration, and gender-focused labour participation (“SHEconomy”), which could shape consumer behaviors and economic strategies in Singapore.