Economists raise Singapore's 2024 growth forecast to 2.6%

Senior Business Correspondent Private-sector economists raised their 2024 outlook for Singapore's economic growth and lowered their forecast for inflation.

- Ovais Subhani

Professional forecasters in the quarterly survey released by the Monetary Authority of Singapore (MAS) on Sept 11 expect gross domestic product (GDP) to expand 2.6 per cent in 2024, up from 2.4 per cent in the June survey.

GDP growth would be backed by the finance and insurance, construction, and wholesale and retail trade sectors, the survey showed.

However, the forecasters slashed the growth outlook for the key manufacturing sector to 0.6 per cent, from 1.6 per cent in the previous survey. With the manufacturing outlook reduced, the pace of growth in non-oil domestic exports was cut to 3 per cent from 4 per cent.

Conversely, the finance and insurance sector was tipped to grow 5.7 per cent, up from 5.1 per cent in the June survey. Growth in construction was raised to 3.9 per cent from 3.8 per cent. Wholesale and retail trade was seen growing at 3 per cent, up from 2.5 per cent.

Private consumption - or household spending on goods and servicwas likely to grow by 5.5 per cent, higher than the previous forecast of 3.4 per cent, according to the survey.