Hanoi (VNA) – Singapore’s Ministry of Trade and Industry (MTI) on August 13 raised its 2024 growth forecast to 2%- 3% from its range of 1% to 3%.
The adjustment was made partly based on the performance of the Singaporean economy in the first half of 2024, as well as the latest global and domestic economic situations, the MTI said.
In the second quarter, the economy grew 2.9%, unchanged from the MTI’s advance estimate released a month ago. It follows first-quarter growth of 3% – the fastest pace since the 4.2% expansion in the third quarter of 2022.
Moreover, Singapore’s external demand outlook is expected to be resilient for the rest of 2024.
According to MTI chief economist Yong Yik Wei, at barring downside risks globally, growth is expected to stay at this trend rate of around 2% to 3% over the medium term, till around 2033 or thereabouts.
Meanwhile, OCBC Bank chief economist Selena Ling said analysts are keeping their 2024 full-year growth forecast of 2.6% thanks to positive information about the global tech industry and relatively resilient growth in the construction and services sectors.
DBS Bank economist Chua Han Teng said that Singapore’s economic growth in 2024 is driven by a recovery in labour productivity.
The rebound in labour productivity will help to mitigate domestic labour cost pressures, which have been a major concern for Singapore’s businesses over the past two years, he said./.
