Ministry Of Trade And Industry

Singapore's GDP Growth Forecast for 2024 Revised to 2.0% to 3.0%

Economic Outlook Remains Positive

The Ministry of Trade and Industry (MTI) has revised Singapore's GDP growth forecast for 2024 to a range of 2.0% to 3.0%.

This is narrower than the previous forecast of 2.0% to 4.0%, made in May 2023.

MTI's Chief Economist, Mr Gabriel Lim, said that the revision reflects a more cautious outlook for the global economy, particularly in the advanced economies.

Factors Affecting GDP Growth

• Global economic slowdown: The global economy is expected to slow down in 2024, due to factors such as the ongoing war in Ukraine, rising inflation, and tighter monetary policy.
• Weakening demand for Singapore's exports: Singapore's exports are expected to be affected by the global slowdown, as demand for its goods and services falls.
• Rising costs: Businesses in Singapore are facing rising costs, due to factors such as higher energy and raw material prices, which are affecting their profitability.

Government Measures to Support Growth

The government is implementing a number of measures to support economic growth, including:

• Fiscal policy: The government is providing financial support to businesses and households through measures such as grants and tax rebates.
• Monetary policy: The Monetary Authority of Singapore (MAS) is managing monetary policy to ensure price stability and support economic growth.
• Structural reforms: The government is implementing structural reforms to improve the business environment and boost productivity.

Outlook for 2024

Despite the challenges, the Singapore economy is expected to remain resilient in 2024.

The government's support measures, coupled with Singapore's strong fundamentals, are expected to help the economy weather the global headwinds.

MTI's Mr Lim said that the growth forecast for 2024 is "subject to downside risks" but expressed confidence that the Singapore economy can "emerge stronger" from the current challenges.

References

1. Ministry of Trade and Industry. (2023). Economic Survey of Singapore Second Quarter 2023.
2. Monetary Authority of Singapore. (2023). Monetary Policy.