Image Credits: The Straits Times
Singapore’s economic growth for 2024 is projected to be at the higher end of the 2% to 3% range, according to Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS). Speaking at The Bretton Woods Committee’s Future of Finance Forum on September 13th, Chia indicated that recent economic performance has been robust, aligning with the revised forecast provided by the Ministry of Trade and Industry, which adjusted its estimate from 1% to 3% in August.
Chia highlighted that recent economic indicators have shown growth trending towards the upper end of this range, and he expects the final figure for the year to fall squarely within it. His comments followed a report from private-sector economists, who recently revised their GDP growth forecast for 2024 up to 2.6%, an increase from the previous 2.4% projection made in an MAS survey in June.
In addition to growth forecasts, Chia noted a significant easing in inflation. Core inflation, which excludes private transport and accommodation costs, stood at 2.5% in July, a notable decline from its 14-year high of 5.5% in January. He expressed confidence that inflation would continue to move towards more comfortable levels in 2025, aligning with MAS’s target of 2% core inflation by early next year.
Chia observed that Singapore’s economic recovery has become more broad-based, with a notable turnaround in manufacturing, which grew by 1.8% year-on-year in July after a contraction in previous months. This recovery complements the ongoing strength in the services sector.
He also noted that the broader Southeast Asian region is experiencing similar growth recovery and easing inflationary pressures, aided by the China-plus-one strategy, which sees companies diversifying manufacturing away from China.
The conference, hosted by UBS in Singapore, also featured insights from Reserve Bank of India Governor Shaktikanta Das, former Federal Reserve Bank of New York President William Dudley, and UBS Group Chairman Colm Kelleher. Discussions focused on global economic outlooks and financial stability challenges, including the need for improved regulatory frameworks in light of recent financial disruptions.