SINGAPORE: The city-state’s economy saw a strong rebound in the third quarter of 2024, with the country’s Gross Domestic Product (GDP) expanding by 5.4% compared to the same period last year. According to a report by the Institute of Chartered Accountants in England and Wales (ICAEW) published in the Singapore Business Review, this growth was largely fueled by the manufacturing sector, which reported an impressive 11% year-on-year (YoY) increase.
Manufacturing leads the way
The standout performer was the domestic electronics industry, which surged by 17% YoY, helping to bolster overall manufacturing output. This growth highlights Singapore’s role as a key player in the global tech supply chain, further solidifying its economic recovery.
Service and construction sectors slow down
However, not all sectors experienced growth. The service and construction industries saw a slowdown, with quarterly growth falling to just 0.9% from the previous period. The dip signals challenges in these sectors, which could impact broader economic momentum. Looking ahead, Singapore’s exports are expected to continue benefiting from a global technology cycle but at a slower pace. Oxford Economics forecasts a slight global growth uptick in 2025, from 2.7% to 2.8%.
Private consumption is also projected to slow down, with growth expected to drop from 6.1% in 2024 to just 2.5% in 2025, partly due to fewer interest rate cuts following the potential re-election of Donald Trump. However, this is unlikely to drive a significant boost in business investments, and export growth may remain tempered. On a positive note, inflation is anticipated to ease to 2.0% in 2025, down from 2.4% this year, thanks to reduced car ownership costs and adjustments in global oil prices.
