SINGAPORE – Singapore’s economy has shown strong resilience in 2024, with a robust third-quarter performance and an upgraded growth forecast for the year. The country’s economy grew 5.4% in Q3, surpassing the advanced estimate of 4.1%, signaling stronger-than-expected momentum. As a result, the Ministry of Trade and Industry (MTI) has revised its economic growth projection for 2024 to around 3.5%, up from the previous forecast range of 2% to 3%, set in August.
The upgrade comes after a better-than-expected performance in the first three quarters of 2024, with GDP growth averaging 3.8% compared to the same period last year. The MTI attributed the revision to both domestic and global factors, including improvements in global trade conditions and the recovery of key sectors within Singapore’s economy.
In a statement, the MTI highlighted that key sectors such as manufacturing, finance, and trade have all seen solid performance, which has contributed to the higher-than-expected growth in the first three quarters. The government’s pro-growth policies and investments in innovation and technology have also supported the recovery, reinforcing the country’s economic resilience.
Despite the positive outlook for 2024, Singapore faces continued global uncertainties, including the evolving geopolitical landscape and fluctuations in global demand. These challenges could have a bearing on economic conditions in 2025.
Looking ahead to 2025, the MTI has forecasted a more moderate pace of growth, with GDP expected to expand by around 2% to 3%. Factors such as the potential slowing of global economic recovery, tighter global financial conditions, and challenges in the external trade environment may temper growth expectations.
Nevertheless, the MTI remains optimistic about Singapore’s long-term prospects, particularly as the country continues to focus on high-value sectors, digital transformation, and sustainable growth. “While the outlook for 2025 is more cautious, we are confident in Singapore’s ability to adapt to changing global conditions and remain a competitive global hub,” said the MTI.
As Singapore enters the final stretch of 2024, the upgraded growth forecast reflects a strong economic foundation built on resilience, innovation, and strategic policymaking. However, careful monitoring of global trends will be essential as the economy navigates potential headwinds in the coming year. (zai)