Singapore’s economy grew 4% in 2024, surging ahead of 2023’s +1.3%

Singapore GDP Q4 2024 +4.3% y/y

• expected +3.3%, previous +5.4%

+0.1% q/q

• expected
  -0.4%, prior +3.2%

• Economic Growth:

  • Singapore’s economy grew by 4.0% in 2024, a significant increase from the 1.1% growth in 2023, according to preliminary government data.
  • In the fourth quarter, GDP expanded by 4.3% year-on-year, surpassing economists’ median forecast of 3.3%. This acceleration augers well for the quarters ahead.
  • On a quarter-on-quarter basis (seasonally adjusted), GDP rose 0.1% in the October-December period.

• Inflation Trends:

  • November’s annual inflation rate of 1.9% was the lowest in nearly three years, creating potential scope for monetary policy easing.
  • Analysts suggest the central bank may wait until later in 2025 to adjust policy, depending on the impact of the incoming U.S. administration’s policies.

• Monetary Policy:

  • The Monetary Authority of Singapore (MAS) held its policy steady during the October review, given improving economic activity.
  • MAS’s next policy review is scheduled for this month, 31 January 2025.

This article was written by Eamonn Sheridan at www.forexlive.com.