The Ministry of Trade and Industry (MTI) has narrowed the 2024 gross domestic product (GDP) growth forecast for Singapore to 2 to 3 per cent, following the performance of the economy in the first half of 2024, as well as the latest global and domestic economic situations.

This is compared to the previous forecast of 1 to 3 per cent, according to the ministry on Aug. 13.

Singapore's GDP grew by 2.9 per cent in the second quarter of 2024.

Singapore's economy grew by 2.9 per cent

The Singapore economy grew by 2.9 per cent on a year-on-year basis in the second quarter of 2024, extending the 3 per cent growth in the previous quarter.

On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.4 per cent, similar to the 0.4 per cent expansion in the first quarter.

The sectors that contributed the most to GDP growth during the quarter were the finance and insurance, wholesale trade, and information and communications sectors, said MTI.

Gradual recovery expected for second half of 2024 for most sectors

With the intensification of geopolitical and trade conflicts and disruptions to the global disinflation process, Singapore’s manufacturing sector is expected to see a gradual recovery in the second half of 2024.

This is especially so for the electronics cluster, due to the robust demand for smartphone, PC, and AI-related chips.

The demand will also benefit the precision engineering cluster, MTI said.

Expansion is also expected in the chemicals cluster, partially supported by higher production in the petrochemicals and specialty chemicals segments.

However, the biomedical manufacturing cluster is predicted to contract, as pharmaceutical output is projected to stay weak for the rest of the year.

Trade-related services sectors, such as the machinery, equipment and supplies segment of the wholesale trade sector, are also expected to benefit from the projected recovery of the manufacturing sector.

Continued recovery in air travel and tourism demand will support growth in the tourism- and aviation-related sectors.

Growth in the finance and insurance sector should also remain robust, as global policy rate cuts continue to be implemented amidst sustained disinflation.

https://mothership.sg/2024/04/singapore-gdp-growth-1q-2024

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