First Quarter GDP Exceeds Expectations Despite Slower Quarterly Expansion
Singapore’s Ministry of Trade and Industry (MTI) has kept its official GDP growth forecast for 2024 at 1 to 3 percent, citing a resilient external demand outlook. The country’s economy expanded by 2.7 percent year-on-year in Q1, slightly higher than the private-sector economists’ forecast of 2.5 percent growth. This was an improvement from the previous quarter’s 2.2 percent growth. However, on a seasonally adjusted quarterly basis, GDP growth slowed to 0.1 percent, down from 1.2 percent in the previous quarter.
The growth in the services sector was a key driver, expanding by 3.9 percent year-on-year, outperforming the previous quarter’s 2 percent growth. Despite this, manufacturing contracted by 1.8 percent due to a decline in the electronics cluster, while construction grew by 4.1 percent, slightly below expectations.
Looking ahead, MTI forecasts a gradual pickup in growth for Singapore’s manufacturing and trade-related sectors, particularly in electronics, and a positive outlook for aviation, tourism, and consumer-facing sectors. However, global economic risks remain, with concerns over geopolitical tensions and market volatility affecting the broader economic environment. Despite these risks, Singapore’s economy is expected to maintain its momentum in the latter half of the year.
