Singapore's economy soared in 2024, achieving a remarkable 4.4% growth in Gross Domestic Product (GDP), its fastest expansion since 2021. This robust growth exceeded advance estimates of 4.3% released on January 2. The Ministry of Trade and Industry credited the growth to significant contributions from the wholesale trade, finance and insurance, and manufacturing sectors.
Despite the overall economic upturn, Singapore's retail trade and food and beverage sectors experienced contractions. Analysts attributed these declines to a shift in consumer spending towards overseas travel destinations, affecting domestic consumption patterns. This shift underscores a change in consumer behavior as global travel restrictions ease.
In the fourth quarter alone, Singapore's GDP grew by 5% year-on-year, surpassing the 4.7% forecast by a Reuters poll. However, this figure fell short of the 5.7% expansion recorded in the preceding quarter, indicating a slight slowdown in growth momentum. The fourth-quarter growth was notable for its resilience amid global economic uncertainties.
Looking ahead, Singapore's GDP growth forecast remains at 1% to 3% for the full year of 2025. This projection reflects cautious optimism as the nation navigates potential challenges in the global economic landscape. The economy had previously expanded by 1.8% in 2023, demonstrating a consistent upward trajectory over recent years.
The contraction in the retail trade sector during 2024 highlights an area of concern for policymakers. As consumers increasingly directed their spending towards international travel, local businesses faced challenges adapting to this evolving trend. Similarly, the food and beverage sector grappled with shifting consumer preferences amidst rising competition from overseas markets.
The wholesale trade, finance and insurance, and manufacturing sectors emerged as key drivers of Singapore's economic growth in 2024. These industries capitalized on global demand and favorable market conditions, contributing significantly to the country's robust performance.