Despite a dip in the fourth quarter, Singapore’s economy surpassed projections to increase 4.0 percent in 2024, according to preliminary official figures released on Thursday.
According to the commerce ministry, the city-state’s economy, which depends heavily on trade, grew at a faster rate than the 1.1 percent growth recorded in 2023.
The number exceeded the government’s updated November prediction of about 3.5 percent growth for the entire year.
Due to its strong reliance on international trade, Singapore’s economic performance is frequently regarded as a gauge of the state of the world economy.
Preliminary estimates from the commerce ministry indicate that growth in the last quarter of last year was 4.3 percent, down from 5.4 percent in the third quarter.
A major pillar of the export-driven economy, manufacturing grew 4.2% in the fourth quarter after growing 11.1% in the preceding three months.
After declining 4.3 percent in 2023, the industry grew 3.5 percent for the entire year.
The fourth quarter saw a stronger expansion in construction, growing 5.9 percent compared to 4.7 percent in the three months leading up to September.
Retail and wholesale, lodging, and food services were the main drivers of the services sector’s 4.3 percent increase from 4.0 percent.
Prime Minister Lawrence Wong said in his New Year’s message that 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.
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