Singapore economy expected to grow from 1% to 3 % in 2024

Confluence between these factors can affect consumer and corporate sentiment, and demand. This could lead to a reduction in global trade.

In the third-quarter of 2023, industry shrank 4.6% on an annual basis, compared to a contraction of 7.6% the quarter prior. The entire sector shrank, with the exception of transport engineering.

Construction output grew in both sectors, public and private, by 6.3%. This is an extension of the 7.7% expansion seen in the previous quarter.

Growth in information and communications slowed down to 5.6 %, down from 7 % in the 2nd quarter. The real-estate sector increased by 3.4%, compared with the 12.1% expansion seen in the 2nd quarter.

Singapore’s Economy is Expected to Grow Between 1 Percent and 3 Percent in 2024 As Trade-Related Sectors Improve Moderately, The Ministry of Trade and Industry(MTI) Said on Nov 22,

MTI’s quarterly economic survey, released in the latest quarter, said that MTI expects growth to slow down in 2023 and will only reach around 1% because of weak export demand.

The forecast is much lower than that of 0.5 percent to 1.5 percent, announced in august.

MTI has also stated that the gross internal product grew 1,1% in the 3rd quarter compared to the previous quarter. That’s a much faster rate than the 0,5% increase in 2nd quarter, and the 0,4% growth in 2023’s first three-month period. MTI’s earlier estimate of 0.7 % was also better.

A normalisation of stock levels will also likely support a recovery in global manufacturing activities over the course this year. Global demand for electronic products is forecast to increase, boosting the growth rate of most regions.

Enterprise Singapore announced on November 22 that its key exports will see a modest increase in 2024. It had previously lowered their forecast for the year 2023 because of a weaker than expected performance.

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Although the Chinese economy has slowed down more than expected, higher interest levels and the cumulative effect of both have kept growth in general low.

MTI’s forecast for 2024 shows that due to the tight financial environment, the growth rates of major economies such the United States or the Eurozone are likely to slow even further in the next half year. They will then gradually pick up again in the following half.

It now anticipates that key nonoil domestic exports will shrink between 12 percent and 12,5 percent by 2023. In August, the forecast was for a contraction of between 9 percent and 10 cents.

Nodx for 2024 is projected to rise from 2 to 4%, along with an expected turnaround in the global electronics market.

Core inflation in advanced countries – which excludes volatile costs for food and energy – may lead central bankers to continue maintaining high interest rates. Also, a escalation or an expansion of the Israel-Hamas or war in Ukraine conflict could lead to a new round of commodity price shocks and supply disruptions.

Analysts claim that an outcome better than expected in the second quarter could indicate stabilisation in the wake of the anaemic performance in the first. It could also portend a possible rebound into 2024.

On a quarterly adjusted basis, growth was 1.4 per cent compared with 0.1 per cent in the second.

The ongoing recovery of air travel as well as inbound tourism has been a major factor in the growth of sectors such air transportation and accommodation. While the resilient labor market continues to boost consumer-facing sector like retail trade and services such as food and drink.