Singapore economy grows by 4% in 2024, tops forecasts

Singapore's economy grew by 4% last year. Photo / Singapore Tourist Board

Singapore’s economy beat forecasts to grow by 4.0% in 2024 despite a slowdown in the fourth quarter, preliminary government data showed on Thursday.

The trade-reliant city-state’s economy accelerated from the 1.1% growth registered in 2023, the trade ministry said.

The figure surpassed the government’s revised forecast made in November for full-year growth of around 3.5%.

Singapore’s economic performance is often seen as a barometer of the global environment because of its heavy reliance on international trade.

Growth in the final quarter of last year came in at 4.3%, according to preliminary estimates by the trade ministry, easing from 5.4% in the third quarter.

Manufacturing, a key pillar of the export-driven economy, expanded 4.2% in the fourth quarter, down from 11.1% in the previous three months.

The sector grew 3.5% for the full year, reversing a 4.3% decline in 2023.

Construction was more robust in the fourth quarter, expanding 5.9% from 4.7% in the three months to September.

The services sector rose 4.3% from 4.0%, led by wholesale and retail, as well as accommodation and food services.

Singaporean Prime Minister Lawrence Wong said in his New Year’s message geopolitical tensions such as the war in Ukraine and violence in the Middle East would continue to influence Singapore’s economy, along with higher living costs.

“While global inflation has moderated, price levels have not fallen, much less returned to pre-pandemic levels,” he said on Tuesday.

“Across many countries, cost of living pressures continue to weigh heavily on families and communities. People feel a deep sense of angst and anxiety about the future,” he said.

Singapore was “not immune from these global mood shifts and pressures”, Wong said.