Singapore GDP up 2.7% in Q1 2024

It was driven by the strong performance in the services and construction sectors.

Singapore’s economy grew by 2.7% in the first quarter of 2024.

The growth was largely attributed to a strong performance in the services and construction sectors, despite a decline in manufacturing, according to Asian Development Bank's Asian Development Outlook July 2024.

The GDP increase was also supported by increased consumption expenditure, though investment showed signs of contraction.

Both exports and imports demonstrated robust growth, albeit at a slower pace compared to the previous quarter. Despite the underwhelming performance of the manufacturing sector in Q1, the sector’s Purchasing Managers' Index (PMI) remained in expansionary territory as of May, reflecting positive business sentiment. 

Looking ahead, the services sector is expected to maintain a positive outlook over the next six months, albeit slightly below earlier forecasts. Domestic demand and export activity are projected to remain strong, continuing to support growth despite challenges from higher consumer prices and interest rates.

In Southeast Asia, the growth projections for 2024 and 2025 remain steady at 4.6% and 4.7%, respectively, driven by substantial improvements in both domestic and external demand. 

Consumption, buoyed by stable prices and a rise in tourism, continues to support economic expansion across the region, although the impact of a stringent monetary policy has moderated this growth. 

Increased investment in infrastructure projects within major Southeast Asian economies is also contributing to growth. The anticipated recovery in exports and positive manufacturing PMI readings further bolster the region’s economic outlook. 

The growth forecasts for all Southeast Asian economies, except for Lao PDR, remain unchanged for 2024 and 2025.

“Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year,” said ADB Chief Economist Albert Park. 

“The region’s fundamentals remain strong, but policy makers still need to pay attention to a number of risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions,” he noted.