The economy should benefit as the global tech industry slowly recovers and global interest rates level off. Read more at straitstimes.com.
SINGAPORE – Singapore’s economy is expected to shake off the stagnation it has suffered for most of 2023 and grow at a faster pace in 2024.the upcoming hike in the goods and services tax ,The Monetary Authority of Singapore said growth should speed up – after coming in at the lower half of the 0.5 per cent to 1.5 per cent forecast range in 2023 – as global demand for Singapore’s exports recover and interest rates cease their surge globally, helping the financial sector here.
The economy avoided an outright recession as the domestic-oriented services sector and travel-related industries offset the slump in manufacturing and the weaker financial sector with their above-trend growth after the end of Covid-19 curbs, the central bank said.both at home and abroad. MAS believes manufacturing in Singapore should see a cautious recovery, although growth could be lacklustre for an extended period amid the lingering uncertainty over the trajectory of the major economies – namely the United States, China and the European Union.
Meanwhile, travel-related industries benefitted from the reopening of borders, chalking up strong double-digit growth rates.Based on advance estimates, overall GDP expanded by 1 per cent quarter on quarter in the third quarter, improving from 0.1 per cent in the previous quarter. The US and Eurozone are expected to experience a period of below trend growth, as the lagged impact of tighter monetary policy and diminishing saving buffers increasingly weigh on economic activity and spending, said MAS.to face headwinds from the structural challenges facing its property market.