SINGAPORE: Singapore’s economy expanded by 2.7% year-on-year in Q1 2024, marking the fastest growth in 18 months, as reported on Thursday. This growth
SINGAPORE: Singapore’s economy expanded by 2.7% year-on-year in Q1 2024, marking the fastest growth in 18 months, as reported on Thursday. This growth matched preliminary estimates from April and outpaced economists’ forecasts of 2.5%, signaling optimism for manufacturing and trade sectors in the coming months.
Edward Robinson, deputy managing director at the Monetary Authority of Singapore (MAS), affirmed that current monetary policies are appropriate to manage both imported inflation and domestic costs, supporting medium-term price stability. April’s annual core inflation held steady at 3.1%, with MAS expecting it to ease further by Q4. For 2024, core and headline inflation are projected to average between 2.5% and 3.5%.
The Ministry of Trade and Industry held its GDP growth forecast at 1.0% to 3.0% for 2024, noting a gradual uptick expected in manufacturing and trade. OCBC economist Selena Ling highlighted that the economy is on track to exceed a 2% growth handle this year.
Despite recent challenges in non-oil exports, with annual declines of 9.3% in April and 20.8% in March, Enterprise Singapore has a positive forecast, expecting non-oil exports to rise between 4.0% and 6.0% this year. However, potential risks remain, including geopolitical tensions, global financial conditions, and market volatility.
The announcement follows a significant leadership change as Lawrence Wong assumes the role of Prime Minister, acknowledging that the country faces global challenges as a trade-dependent economy.
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