Singapore economy grows 4.4% in 2024

But growth expected to slow in 2025 due to risks from global conflicts, US trade policies

- Ovais Subhani

Singapore's economy will slow in 2025 after a stronger-than-expected performance in 2024 as global uncertainties and barriers to trade intensify, though the slower growth is not expected to have an immediate impact on jobs and wage growth.

The economy expanded at a faster pace of 4.4 per cent in 2024 compared with an earlier estimate of 4 per cent, the Ministry of Trade and Industry (MTI) on Feb 14 said in its economic survey for the year.

This came as the economy grew 5 per cent year on year in the fourth quarter of 2024, higher than the initial estimate of 4.3 per cent.

However, MTI kept unchanged its slower growth forecast for 2025 at the 1 per cent to 3 per cent range, flagging downside risk from a further escalation of geopolitical conflicts and higher uncertainty over US trade policies under President Donald Trump.

Anaemic growth spread over several quarters is usually indicative of a depressed business environment and could hit job and wage growth. However, MTI permanent secretary Beh Swan Gin said a major impact on employment growth is not expected as yet, in response to a question from The Straits Times at a briefing on Feb 14.

"So far, the vacancy rates, unemployment levels and retrenchment levels have all been very stable, so we do not see any cause for concern at this point," he said, adding that MTI will monitor the situation closely.

The overall unemployment rate in Singapore was 2 per cent in 2024, compared with 1.9 per cent in 2023. Meanwhile, real median income, which excludes inflation, rose 3.4 per cent in 2024.

MTI said: "Uncertainties in the global economy remain significant, with the risks tilted to the downside.