Gradual Recovery Expected Amid Global Economic Challenges
Singapore’s economy is projected to improve gradually in the second half of 2024, with a more balanced growth across sectors, according to the Monetary Authority of Singapore (MAS). Despite global growth slowing down due to tight monetary policies in major economies, MAS expects Singapore’s growth to align more closely with its potential rate, which typically ranges from 2% to 3%.
For 2023, Singapore’s GDP growth is forecast to fall within the lower half of the official forecast range of 0.5% to 1.5%. Growth in 2024 will depend heavily on external demand, especially from key markets like China and the United States. The global electronics sector is showing signs of recovery, but Singapore’s electronics industry is expected to improve noticeably only in the latter half of 2024, with continued challenges stemming from geopolitical tensions and supply chain disruptions.
In contrast, domestic industries such as food and beverage, retail, and travel are anticipated to see growth stabilize as post-pandemic recovery wanes. While employment growth is expected to remain steady, wage growth is likely to slow due to a moderation in economic momentum and a return to more typical bonus payments.
Overall, Singapore’s economy is expected to face a gradual recovery, with sectoral growth converging towards pre-pandemic trends, barring any unforeseen global shocks.
