Singapore has revised its 2024 economic growth forecast to approximately 3.5%, surpassing its earlier projection range. The Ministry of Trade and Industry (MTI) attributed this adjustment to the economy's better-than-expected performance in the first three quarters and an assessment of the current global and domestic situations.

For the first three quarters, GDP growth averaged 3.8% year-on-year, with third-quarter growth revised to 5.4% from an earlier estimate of 4.1%. This outpaced the 3% growth in the second quarter, which itself was revised upward from 2.9%. On a quarter-on-quarter seasonally adjusted basis, GDP expanded by 3.2% in the third quarter, accelerating from 0.5% in the previous quarter.

The manufacturing, wholesale trade, and finance and insurance sectors were primary drivers of growth in Q3, partly benefiting from a rebound in the global electronics sector. The manufacturing sector, in particular, grew 11% year-on-year, reversing its 1.1% contraction in Q2. Quarter-on-quarter, the sector saw a seasonally adjusted growth of 13.5%.

Looking ahead, MTI forecasts GDP growth for 2024 to be in the range of 1% to 3%. The overall external demand outlook for the remainder of the year is expected to remain resilient, with a recovering global electronics market boosting Singapore's manufacturing and outward-oriented services sectors like wholesale trade.

However, the ministry noted that tourism-related and consumer-facing sectors, including accommodation, retail trade, and food & beverage services, face challenges due to slower-than-expected international visitor arrivals and weak tourist spending.

In August, MTI had narrowed its GDP growth forecast for 2024 to a range of 2% to 3%. The latest revision underscores the ministry's confidence in the economy's sustained resilience amid global uncertainties.

CNA