MTI maintains 1%-3% GDP 2024 growth forecast despite 1Q expansion

GDP grew 2.7% YoY in 1Q24.

The Ministry of Trade and Industry (MTI) has kept its GDP growth forecast for 2024 at 1.0% to 3.0%, taking into account Singapore’s first-quarter performance.

Gross domestic product (GDP) grew faster in 1Q24, increasing 2.7% YoY. In 4Q23, the GDP grew by 2.2% YoY.

Quarter-on-quarter, GDP expanded by 0.1%, extending the 1.2% growth in the preceding quarter.

Most sectors recorded expansions, led by accommodation, which recorded a 14.4% YoY growth. Singapore’s mutual visa-free arrangement with China and a robust lineup of events helped drive growth in the sector.

Meanwhile, the goods-producing industries, manufacturing and construction, also recorded expansions, growing by 1.8% YoY and 4.1% YoY, respectively. 

MTI forecasts a steady recovery in growth for the manufacturing and trade-related sectors as the year progresses.

“Within the manufacturing sector, the electronics cluster is projected to recover gradually in the coming quarters, supported by demand for semiconductors for end-markets such as smartphones, PCs and AI,” the MTI said.

“Growth in the electronics cluster will, in turn, have positive spillover effects on the precision engineering cluster and the machinery, equipment & supplies segment of the wholesale trade sector,” the MTI added.