Unexpected Q4 growth of 4.3% boosts Singapore’s full-year GDP to 4%.

Singapore's economy exhibited robust growth in 2024, achieving a 4% year-on-year increase. This performance markedly surpassed the 1.1% growth recorded in 2023 and exceeded the official forecast of approximately 3.5%, as indicated by the Ministry of Trade and Industry (MTI).

The GDP growth for Q4 2024 was 4.3%, a deceleration from the revised 5.4% in Q3, primarily due to a slowdown in manufacturing growth, which fell to 4.2% from 11.1% in the previous quarter.

Seasonally adjusted, the quarterly economic growth was 0.1% in Q4, down from 3.2% in Q3. The manufacturing sector grew 3.5% year on year but experienced a quarterly contraction of 2.5%. Meanwhile, the construction sector expanded by 5.9% in Q4 and 4.8% for the entire year, driven by increased public-sector output, with a quarterly growth of 3.4%.

The services sector grew 4.3% year on year in Q4 and 4.1% for the full year. Notably, the wholesale, retail trade, and transportation sectors collectively expanded by 5.6% year on year. Looking ahead, MTI anticipates the economy to grow by 1 to 3% in 2025.

Prime Minister Lawrence Wong highlighted that global inflation has moderated, but prices remain elevated compared to pre-pandemic levels. He announced plans for targeted assistance to support older individuals and lower-income groups in managing cost-of-living increases.