Singapore's Economy Expands 4.3% Year-on-Year in Q2, Outperforming Expectations
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Singapore's economy showed robust growth in the second quarter of 2024, with preliminary data indicating a 4.3% year-on-year expansion, surpassing analyst forecasts. On a quarterly basis, GDP rose by 1.4%, signaling steady momentum despite global economic uncertainties.
The strong performance was driven by a rebound in manufacturing and sustained growth in the services sector, particularly in finance, tourism, and trade-related industries. The Ministry of Trade and Industry (MTI) noted that electronics and precision engineering led the manufacturing uptick, while a resurgence in regional travel bolstered service exports.
Economists had anticipated a more modest annual growth rate of 3.8%, making the 4.3% figure a positive surprise. The government maintains its 2024 GDP growth forecast at 2.5% to 3.5%, though some analysts suggest upward revisions may follow if the current trend continues.
Regional comparisons show Singapore outpacing neighboring economies like Malaysia and Thailand, which have faced slower export demand. The city-state’s strategic focus on high-value industries and digital transformation appears to be paying off, though policymakers remain cautious about potential headwinds from inflation and geopolitical tensions.
