Singapore's Economic Growth in 2024

According to advance estimates from the trade ministry, Singapore's Gross Domestic Product (GDP) rose by 4.3% in the fourth quarter compared to the previous year. This growth surpassed the median forecast of 3.3% from a Reuters poll of economists.

On a quarter-on-quarter seasonally adjusted basis, the GDP expanded by 0.1% during the October-December period.

Expert Insights on Singapore's Economy

Maybank economist Chua Hak Bin highlighted, "Singapore is starting the year in a sweet spot, with growth on a high and inflation at below 2%." He also noted that shifting supply chains to Southeast Asia and the anticipation of higher U.S. tariffs would continue to drive manufacturing growth in the first half of 2025.

The trade ministry had previously forecasted a growth of 1.0% to 3.0% for 2025, a cautious estimate that OCBC economist Selena Ling believes is realistic given the current external challenges.

Inflation and Monetary Policy

November's annual inflation rate of 1.9% marked the lowest in almost 3 years, potentially allowing the central bank to ease monetary policy at its January review. However, analysts suggest that the Monetary Authority of Singapore might wait until later in 2025 to assess the impact of incoming U.S. President Donald Trump's policies.