Singapore’s Economy Grows 4.3% in Q4 2024: MTI Advance Estimates
SINGAPORE: In the final quarter of 2024, Singapore’s economy witnessed a growth rate of 4.3 per cent compared to the same period last year, as per the latest advance estimates released by the Ministry of Trade and Industry (MTI) on Thursday (Jan 2). This growth rate, although slightly slower than the 5.4 per cent recorded in the third quarter, contributed to an overall GDP growth of 4 per cent for the entire year, surpassing the 1.1 per cent growth in 2023.
PM Lawrence Wong expressed how the economy’s performance in 2024 exceeded expectations, highlighting that most workers in Singapore received wage hikes that outpaced inflation. This positive outlook was further reinforced when Singapore upgraded its economic growth forecast to around 3.5 per cent in November, surpassing its previous predictions.
Experts Predictions and Concerns
Barclays economist Brian Tan cautioned that the robust growth seen in the third quarter might not be sustained, hinting at signs that the economy could be peaking. He emphasized that Singapore’s economic landscape in 2025 may face challenges, particularly due to potential tariffs imposed by the incoming US administration, which could impact the country’s growth trajectory.
Key Sector Performances
In the fourth quarter, the construction sector saw a growth of 5.9 per cent, while the wholesale and retail trade sector, alongside the transportation and storage sector, expanded by 5.6 per cent. However, the manufacturing sector experienced a slower growth rate of 4.2 per cent compared to the previous year, with the electronics and transport engineering clusters driving this growth.
Mr. Tan highlighted the significance of the electronics sector in supporting Singapore’s manufacturing industry, especially with the unfolding artificial intelligence narrative. He mentioned that advancements in the semiconductor cycle could bolster manufacturing activities in the country, providing a ray of hope amidst the economic uncertainties.
Service Sector Growth
Within the services sectors, the wholesale and retail trade, transportation and storage, information and communications, finance and insurance, professional services, accommodation, food services, real estate, administrative, and support services sectors all reported positive growth in the fourth quarter. The financial services segment, particularly banking, fund management, and payment firms, stood out as strong performers, contributing to the overall growth of this sector.
Overall Outlook
Despite the challenges posed by global trade tensions and economic uncertainties, Singapore’s economy entered 2025 on a relatively strong footing. The resilience and adaptability showcased by various sectors in 2024 lay a promising foundation for navigating the potential hurdles in the coming year. As the nation continues to evolve amidst a dynamic global landscape, strategic planning and innovative solutions will be crucial in sustaining growth and fostering economic stability.
This article has been crafted to provide a comprehensive insight into Singapore’s economic landscape in the last quarter of 2024, shedding light on key growth indicators and expert perspectives to offer readers a deeper understanding of the country’s economic trajectory.