Singapore’s Economy Grows at Faster Pace of 2.7% in Q1 2024: Advance Estimates

Singapore’s economy has shown resilience and growth in the first quarter of 2024, defying global economic challenges. According to advance estimates released by the Ministry of Trade and Industry (MTI), the nation’s gross domestic product (GDP) expanded by 2.7% year-on-year during this period. Let’s delve into the details of this economic performance:

Key Highlights:

1. Year-on-Year Growth:
   • Singapore’s economy grew by 2.7% compared to the same quarter in the previous year.
   • This growth rate surpassed the 2.2% recorded in the last quarter of 2023.
   • Despite headwinds, the nation’s economic engine continued to drive forward.
2. Quarter-on-Quarter Expansion:
   • On a quarter-on-quarter seasonally adjusted basis, Singapore’s economy expanded by 0.1%.
   • This extension followed the 1.2% growth achieved in the fourth quarter of 2023.
   • The steady upward trajectory signals resilience amid global uncertainties.
3. Sector Performances:
   • Manufacturing Sector:
     • Year-on-year growth in manufacturing moderated to 0.8% during Q1 2024, down from the 1.4% expansion in the previous quarter.
     • Output expansions in the chemicals, precision engineering, and transport engineering clusters offset contractions in electronics, biomedical manufacturing, and general manufacturing.
   • Construction Sector:
     • Year-on-year growth in construction stood at 4.3%, extending the 5.2% growth in Q4 2023.
     • Public-sector construction output supported growth, even as private-sector construction output declined.
   • Services Sectors:
     • The wholesale and retail trade, along with transportation and storage sectors, collectively expanded by 2.7% year-on-year.
     • Machinery, equipment, and supplies drove growth in the wholesale trade sector.
     • Water and air transport segments contributed to the transportation and storage sector’s expansion.
4. Early Indicator and Data Sources:
   • Advance GDP estimates are primarily based on data collected during the first two months of the quarter (January and February).
   • These estimates serve as an early indicator of economic performance and are subject to revision when more comprehensive data becomes available.

Outlook and Resilience:

Singapore’s economy faces both domestic and global challenges, including supply chain disruptions, geopolitical tensions, and the ongoing pandemic. However, the robust growth in Q1 2024 demonstrates the nation’s ability to adapt and thrive. Policymakers and businesses continue to monitor developments closely, aiming to sustain this positive momentum.