Singapore's economy demonstrated stronger-than-expected growth in the April-June quarter, expanding by 2.9% year-on-year, according to government data released on Tuesday. This growth rate aligns with the official advance estimate and exceeds market forecasts.
In response to the robust performance, the Ministry of Trade and Industry has revised its GDP growth forecast for 2024 to a range of 2.0% to 3.0%, up from the previous range of 1.0% to 3.0%. Economists had anticipated a 2.7% growth rate for the second quarter.
On a quarter-on-quarter, seasonally adjusted basis, GDP increased by 0.4%, matching the advance estimate. The trade ministry highlighted that while the external demand outlook for Singapore is expected to remain resilient for the rest of the year, there are still potential risks from escalating geopolitical tensions and tighter global financial conditions. "Against this backdrop, Singapore's manufacturing sector is expected to see a gradual recovery in the second half of the year," the ministry noted.
The Monetary Authority of Singapore (MAS) has also projected that the economy will strengthen in the latter half of 2024, with growth expected to approach its potential rate of 2–3%. This follows a slower GDP growth of 1.1% for the entirety of 2023, compared to 3.8% in 2022.
Last month, the MAS maintained its current monetary policy settings, reflecting a moderation in inflation pressures and an improved growth outlook.
(Source:www.marketscreener.com)
In response to the robust performance, the Ministry of Trade and Industry has revised its GDP growth forecast for 2024 to a range of 2.0% to 3.0%, up from the previous range of 1.0% to 3.0%. Economists had anticipated a 2.7% growth rate for the second quarter.
On a quarter-on-quarter, seasonally adjusted basis, GDP increased by 0.4%, matching the advance estimate. The trade ministry highlighted that while the external demand outlook for Singapore is expected to remain resilient for the rest of the year, there are still potential risks from escalating geopolitical tensions and tighter global financial conditions. "Against this backdrop, Singapore's manufacturing sector is expected to see a gradual recovery in the second half of the year," the ministry noted.
The Monetary Authority of Singapore (MAS) has also projected that the economy will strengthen in the latter half of 2024, with growth expected to approach its potential rate of 2–3%. This follows a slower GDP growth of 1.1% for the entirety of 2023, compared to 3.8% in 2022.
Last month, the MAS maintained its current monetary policy settings, reflecting a moderation in inflation pressures and an improved growth outlook.
(Source:www.marketscreener.com)
