The Singapore economy boomed in 2024, ending the year off with solid growth in the fourth quarter.
The Singapore economy expanded in 2024, with gross domestic product up 4.4% year-on-year. This was compared to 1.8% growth in 2023, according to data released Friday by the Ministry of Trade & Industry Singapore.
“GDP growth for the year was mainly driven by the Wholesale Trade, Finance & Insurance and Manufacturing sectors,” MTI said.
“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.”
Strong fourth quarter
The Singapore economy had a sterling fourth quarter in 2024, have posted 5.0% year-on-year growth. This was, however, lower than the an even stronger third quarter, which saw Singapore’s gross domestic product leap by 5.7% year-on-year.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 0.5%, slower than the 3.0% expansion in the previous quarter.
Looking ahead, MTI acknowledged that the global economy is looking a bit more uncertain. Despite this uncertainty, Singapore’s demand from overseas markets is expected to stay mostly the same in 2025, but its main trading partners are likely to grow more slowly than they did in 2024.
MTI expects the Singapore economy to expand between 1.0% and 3.0% in 2025.
Sector outlooks
Manufacturing will stay resilient, with strong demand for semiconductors supporting the Electronics, Precision Engineering, and Wholesale Trade segments.
“Within the manufacturing sector, the electronics cluster is projected to expand at a steady pace, supported by robust demand for semiconductor chips in the PC, smartphone and data center end markets,” MTI said.
Aerospace and Marine Engineering will also see steady expansion due to strong order books. Meanwhile, Information & Communications as well as Finance & Insurance sectors should benefit from increased cross-border transactions and business demand for tech solutions.
The Retail Trade and Food & Beverage sectors may struggle as more locals spend time abroad, though rising international tourism could help cushion the impact.
