Singapore’s GDP growth slowed in Q4 2024 to 4.0%, exceeding predictions. The 2025 forecast was adjusted down to 2.2% due to increased downside risks from external tariffs impacting the economy’s openness to trade.
Singapore’s 2024 GDP Growth Exceeds Expectations
Singapore’s GDP growth slowed in Q4, achieving 4.0% in 2024, exceeding predictions. The 2025 growth forecast adjusted down to 2.2%, while downside risks increase from external tariffs. Advance estimates showed that real GDP growth slowed in Q4. However, 2024 growth of 4.0% was quicker than forecasted and sets a stronger base of comparison for 2025 projections.
Revised 2025 Growth Forecast and Risks
With 2024 now a much stronger base of comparison, the 2025 growth forecast has been adjusted slightly downwards from 2.4% to 2.2%. Downside risks have built up considerably due to external factors such as additional tariffs and global economic uncertainty, which could negatively impact Singapore’s economy due to its openness to trade.
Challenges in Singapore’s Economic Outlook for 2025
Singapore’s economic outlook for 2025 faces challenges with a downward revision in growth expectations. Factors such as inflationary pressures, supply chain disruptions, and geopolitical tensions are contributing to a more cautious outlook. Policymakers are urged to focus on fostering innovation and resilience, diversifying trade partnerships, and investing in technology to mitigate risks and sustain economic stability amidst the current global uncertainties.