Singapore's economy grew 4.4% in 2024, beating forecasts
Singapore's economy grew by 4.4 per cent in 2024, beating forecasts and advance estimates.
PHOTO: AsiaOne/Ong Chin Wee
PUBLISHED ONFebruary 14, 2025 3:45 AMByDana LeongSingapore's economy grew by 4.4 per cent in 2024, beating previous estimates and forecasts, according to the Ministry of Trade and Industry (MTI) in a statement on Friday (Feb 14).
The economy expanded by 4.4 per cent in 2024, with GDP growth forecast for 2025 at between 1 per cent and 3 per cent, said the ministry.
Singapore's economy grew by 4 per cent in 2024, according to advance estimates by the ministry last month.
GDP growth in 2024 was mainly driven by the wholesale trade, finance & insurance and manufacturing sectors. The manufacturing sector, in particular, got a major boost from the electronics cluster due to tailwinds from the global electronics cycle.
The finance & insurance sectors also expanded by 6.8 per cent year-on-year in 2024, up from 3.1 per cent in 2023. According to the ministry, this growth was largely due to elevated trading activity and higher credit intermediation activity in banking.
Consumer-facing sectors such as the retail and F&B sectors shrank on the other hand were "weighed down in part by locals shifting their spending overseas".
2025 outlook
The ministry kept the 2025 GDP forecast unchanged at between 1 per cent and 3 per cent, citing "uncertainties in the global economy remain significant, with the risks tilted to the downside".
Uncertainty surrounding economic policy in the US was raised as a key risk, in light of Trump's administration threatening tariffs on countries such as South Korea, China, and the European Union.
Disruptions to the global disinflation process were also raised as another key risk, as this could lead to stricter financial conditions which would inevitably impact the banking and financial systems.
MTI said it is optimistic on the manufacturing sector, which is expected to benefit from the strong global demand for semiconductor chips.
Strong demand for cross-border transactions in the region are also expected to boost the information and communications sector.
MTI's Permanent Secretary Dr Beh Swan Gin said: "Given heightened uncertainties and downside risks in the global economy, MTI will continue to monitor developments closely and adjust the forecast over the course of the year if necessary."
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