Geopolitical tensions seen as a growing downside risk to economic outlook
Private-sector economists have raised their 2024 growth forecast for Singapore after an unexpected boost in the third-quarter growth, but 2025 growth expectations only edged up slightly, according to the latest survey by the Monetary Authority of Singapore (MAS) published on Dec 11.
The consensus forecast for 2024 GDP growth has increased to 3.6%, up from 2.6% in the previous survey. The revised estimate comes on the back of a stronger-than-expected performance in the manufacturing sector.
For 2025, economists predict a modest improvement in growth, but the overall projection remains conservative compared to the more significant increase for 2024.
In terms of inflation, economists have lowered their expectations for both 2024 and 2025, signaling a more stable price outlook.
However, geopolitical tensions have emerged as a key downside risk to the economic forecast, with experts noting that global political instability could potentially disrupt trade flows and impact Singapore’s growth momentum.
Official estimates for 2024 growth are projected at around 3.5%, and the nation is expected to continue navigating through these external uncertainties in the coming years.
