Economy to grow by 2.6% in 2024

Singapore’s GDP is expected to grow by 2.5% in 2025.

Singapore’s economy is forecasted to grow by 2.6% for the whole of 2024, higher than previous forecasts, as the second quarter GDP exceeded expectations.

The economy expanded by 2.9% year-on-year (YoY) in Q2, above the median forecast of 2.7%, according to the September 2024 edition of the Survey of Professional Forecasters published by the Monetary Authority of Singapore (MAS).

The most likely outcome is for the economy to grow between 2.5% to 2.9% YoY in 2024, with an average probability of 39%, the central bank said in its survey.

GDP is expected to expand by 2.5% in 2025, to as high as 2.9%.

Respondents– which made up a total of 21 economists and analysts– have raised their forecasts for the finance & insurance, construction, and wholesale & retail trade sectors.

Finance & Insurance is forecast to expand by 5.7% YoY in 2024, versus the 5.1% YoY growth forecast in September. 

The wholesale & trade sector is forecast to rise by 3% YoY versus the previous 2.5% YoY growth forecasts; and the construction sector’s growth forecast is a 3.9% YoY growth, up from 3.8% YoY previously.

In contrast, the manufacturing (0.6% YoY) and the accommodation & food services sectors (2.9% YoY) got lower forecasts compared to the June survey.

Non-oil domestic exports also got a lower forecast of 3% YoY growth from the previous 4% YoY growth estimate.

Private consumption is now forecast to expand 5.5% YoY in 2024, versus just a 3.4% YoY growth forecast in the June survey.