Business
By Xinghui Kok
SINGAPORE (Reuters) – Singapore’s central bank stated on Monday it expects 2024 inappropriate domestic product growth at the upper end of the two%-3% forecast range, and for subsequent year to bask in a identical growth plug.
In its macroeconomic overview launched on Monday, the Monetary Authority of Singapore (MAS) stated economic growth “strengthened decisively” in the third quarter and pegged the performance to recovery in the manufacturing sector, increased trading in the financial sector and the return of Chinese tourists after a visa exemption started in February.
Preliminary data showed Q3 GDP modified into up 4.1% year-on-year after posting 2.7% growth in Q2.
The central bank cautioned that 2025 has a chance of lower growth for Singapore, a swap-dependent regional financial hub, as a outcome of of heightened global uncertainties.
“The outcome of the upcoming U.S. presidential election, an escalation in geopolitical tensions including in the Middle East, or a sharper slowdown in China could adversely affect global trade and growth, and in turn weigh on Singapore’s economic prospects,” stated the MAS.
“Additionally, the durability of the AI-led global tech cycle recovery remains uncertain and could be sensitive to aggregate demand conditions.”
The MAS maintained that core inflation must mute ease to spherical 2% by the end of this year regardless of inflation rising to 2.8% on an annual basis in September after hitting a 2-1/2 year low of 2.5% in July.
It expects core and headline inflation to moderate 1.5%–2.5% in 2025.
“Given the progressive decline in inflation, the risks to Singapore’s inflation outlook are now assessed to be more balanced compared to previous monetary policy reviews,” stated the MAS, which held its monetary coverage settings again this month in its closing overview of the year.
