SINGAPORE (Reuters) – Singapore’s economy grew 4.0% in 2024, its fastest annual pace since emerging from the pandemic, accelerating from growth of 1.1% in 2023 and 3.8% in 2022, preliminary government data showed on Thursday.
Gross domestic product rose 4.3% in the fourth quarter from a year earlier, according to advance estimates from the Commerce Department, above the average forecast of 3.3% in a Reuters poll of economists.
On a seasonally adjusted quarterly basis, GDP expanded 0.1% in the October-December period.
“Singapore starts the year in good shape, with high growth and inflation below 2%,” said Chua Hak Pin, an economist at Maybank.
“Moving supply chains to Southeast Asia and pre-loading cargoes ahead of potential higher US tariffs will continue to drive manufacturing growth in the first half of 2025,” Chua said.
The Commerce Department said in November that it expects growth of 1.0% to 3.0% in 2025.
Selina Ling, an economist at OCBC, said the dovish outlook is realistic given the current external headwinds and “likely due to Trump 2.0 tariffs and perhaps also fading front-loading activities.”
However, she said growth was unlikely to slow very significantly in 2025. “Assuming the tariffs do not impact Singapore directly, the 1% y/y floor should remain steady. My baseline remains About 2% given the higher base.”
November’s annual inflation rate of 1.9% was the lowest in nearly 3 years, leaving room for the central bank to ease monetary policy in its January review, although analysts believe it may wait until later in 2025 to assess the impact of the president’s policy. The next American, Donald Trump. Policies.
The Monetary Authority of Singapore kept policy steady in its October review, as data showed a pick-up in activity. The next review is scheduled to take place before the end of the month.
https://i-invdn-com.investing.com/news/indicatornews_3_800x533_L_1412601605.jpg
2025-01-02 02:25:00
