Singapore's economy growth beats expectations

Singapore’s economy grew faster than expected in 2024, surpassing earlier projections, despite a slowdown in the fourth quarter, according to preliminary government data.

The Ministry of Trade and Industry reported that this growth marks a significant acceleration from the 1.1% recorded in 2023 and exceeds the 3.5% forecast in November.

The Southeast Asian financial hub’s economic performance is often seen as a global barometer due to its heavy reliance on international trade.

In Q4/2024, the economy grew by 4.3%, a dip from the 5.4% growth in the previous quarter.

Manufacturing, a key pillar of the export-driven economy, expanded by 4.2% in Q4, down from 11.1% in Q3. For the full year, manufacturing rebounded with 3.5% growth, recovering from a 4.3% contraction in 2023.

The construction sector grew 5.9% in Q4, up from 4.7% in Q3, while the services sector posted a 4.3% increase. Notably, wholesale and retail trade, along with accommodation and food services, led the growth within the services sector.

In his New Year message, Prime Minister Lawrence Wong cautioned that geopolitical tensions, such as conflicts in Ukraine and the Middle East, and high living costs could continue to challenge Singapore’s economy in the coming year.