Singapore’s economy exceeded expectations in the third quarter of 2024, with a reported 2.9% year-on-year growth, according to the Ministry of Trade and Industry (MTI). This growth outpaced economists’ projections of a 1.9% increase, yet it represented a decline from a revised 4.5% expansion in the previous quarter. On a seasonally adjusted quarter-on-quarter basis, the economy grew by 1.3%, down from 1.5% in the second quarter.
Manufacturing proved to be a significant factor in the overall slowdown, remaining stagnant after a robust 5% growth in the second quarter. The construction sector also showed signs of easing, reporting a year-on-year growth of 3.1%, a decline from the previous quarter’s 6.2%. “Growth was weighed down by output declines in the biomedical manufacturing and general manufacturing clusters, even as output in the other manufacturing segments expanded,” MTI stated.
Despite the positive quarterly growth, the central bank, the Monetary Authority of Singapore (MAS), maintained its stance from July by keeping policy settings unchanged. MAS indicated that GDP growth is expected to decelerate as activities in trade-related sectors “normalize.” Looking ahead, global investments in artificial intelligence may bolster Singapore’s manufacturing sector, while infrastructure spending is expected to enhance the construction and financial services sectors.
However, a cautionary outlook was provided for 2026, predicting GDP growth to align with external developments, narrowing the output gap to around 0%. MAS documented an 11.3% decline in non-oil domestic exports for August, the steepest drop since March 2024. Notable decreases were seen in exports to key markets such as Indonesia, the U.S., and China. In contrast, non-oil exports increased to the European Union, Taiwan, and South Korea, revealing a mixed export performance.
Specifically, Singapore’s exports to the United States plummeted by 28.8% year on year in August, following a staggering 42.8% decline in July. This trend highlights significant challenges facing the trade landscape as global economic conditions fluctuate.
While Singapore continues to navigate these complexities, the focus will be on how emerging sectors, particularly in technology and infrastructure, can spur further resilience in the economy. Investors and analysts alike will be closely monitoring the unfolding economic scenario, especially as the MAS’s predictions unfold.
This development signals the need for adaptive strategies as Singapore positions itself to withstand the challenges of a changing global market while capitalizing on growth opportunities in burgeoning sectors. As the situation evolves, further updates will provide deeper insights into the economy’s trajectory.
Original Source: https://www.cnbc.com/2025/10/14/singapore-gdp-expands-at-slowest-pace-in-two.html
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Publish Date: 2025-10-14 06:12:00
