Singapore’s Economic Prospects Brighten for 2024
In a recent survey conducted by the Monetary Authority of Singapore (MAS), economists have adjusted their forecasts, painting a more optimistic picture for Singapore’s economy in 2024. The upgrade comes on the back of stronger-than-expected external growth, signaling positive momentum for the nation’s economic landscape.
Key Highlights:
- Economists, surveyed by MAS, have raised their growth forecast for Singapore in 2024 to 2.4 per cent, up from the previous estimate of 2.3 per cent in December.
- The Ministry of Trade projects a GDP growth range of 1.0 per cent to 3.0 per cent for the year, indicating a favorable outlook for economic expansion.
- Inflation expectations have been revised downward, with both headline and core inflation anticipated to fall within the 3.0 to 3.4 per cent range, reflecting a more subdued inflationary environment than previously anticipated.
- MAS forecasts core inflation to moderate to an average of 2.5-3.5 per cent for 2024, suggesting a stable inflationary trajectory.
- Despite fourth-quarter GDP results for the previous year coming in slightly lower than expected, with a year-on-year growth rate of 2.2 per cent, economists remain optimistic about Singapore’s economic prospects for the year ahead.
- The majority of surveyed economists do not foresee any changes to the monetary policy during the April 2024 review, reflecting confidence in the current policy stance.
MAS, which maintained its monetary policy settings in January amidst easing inflation pressures and improved growth prospects, has adopted a new quarterly review schedule for policy announcements, aligning with the evolving economic landscape.
Continued Economic Resilience
Singapore’s ability to adapt to changing economic conditions and the proactive measures taken by policymakers have contributed to its resilience amidst global uncertainties.
With an upgraded growth forecast, moderated inflation expectations, and a stable monetary policy outlook, Singapore’s economy appears poised for steady expansion in 2024. Continued vigilance and adaptability will be essential in navigating potential challenges and seizing opportunities in the dynamic global economic environment.
Source: Reuters
