Singapore's GDP growth in the final quarter last year eased slightly versus the preceding three months. Nonetheless, the full year ended with a growth of 4.4%, an acceleration over 1.8% chalked up in 2023.
According to the Ministry of Trade and Industry (MTI), Singapore's GDP grew by 5.7% in 4Q2024, a slight drop versus 5.7% reported for 3Q2024.
Taking into account the external and domestic economic environment, and barring the materialisation of downside risks, the Singapore economy is projected to expand by 1% to 3% in 2025, says MTI.
"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," says MTI's permanent secretary Dr Beh Swan Gin.
According to MTI, growth last year was mainly driven by the wholesale trade, finance & insurance and manufacturing sectors.
In particular, the electronics cluster of the manufacturing sector and machinery, equipment & supplies segment of the wholesale trade sector grew robustly on account of the upturn in the global electronics cycle.
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Meanwhile, growth in the finance & insurance sector was driven by stronger trading activity, which helped banks and fund managers enjoy strong growth in fees.
On the other hand, the retail trade and food & beverage services sectors contracted, partly due to locals shifting their spending to overseas travel destinations.
Citing the last Economic Survey of Singapore in November 2024, MTI noted that major economies have remained resilient, performing largely in line with expectations in the fourth quarter of 2024 amidst rising global economic uncertainty.
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The outlook for 2025 has remained "broadly unchanged", with overall GDP growth in Singapore’s key trading partners expected to ease from 2024.
US growth is seen to "moderate" as consumption tapers off. Also, "there is a large cone of uncertainty surrounding the outlook of the US economy, with its trajectory depending on the policies of the new US administration," says MTI.
The Eurozone is likely to improve, led by improved consumption growth and a gradual recovery in investments as rates continue to ease.
China's growth is likely to moderate due to a slow down in merchandise exports and investment growth due to tariff hikes and industrial overcapacity.
Last but not least, growth in the key Southeast Asian economies should remain steady, supported by improving domestic demand and a sustained recovery in tourism demand.
On the whole, uncertainties in the global economy remain significant, with the risks tilted to the downside, says MTI.
