Singapore's Economic Growth Surges as Inflation Declines
Singapore's Economic Performance in 2024
According to preliminary data, Singapore's economy has shown remarkable growth of 4.0% in 2024, a significant improvement from the meager 1.1% growth witnessed in the previous year. This advance estimate, released by the government, reflects a strong rebound in economic activity.
Quarterly Growth Highlights
In the fourth quarter alone, the Gross Domestic Product (GDP) increased by 4.3% compared to the same period last year. This surge exceeded analysts' expectations, with a median forecast predicting a growth rate of only 3.3%, as highlighted in a recent Reuters economists' poll. The GDP demonstrated resilience with a slight quarter-on-quarter seasonally adjusted growth of 0.1% during the October-December period, reinforcing the positive trend in Singapore's economic landscape.
Inflation and Monetary Policy Outlook
Moreover, November registered an annual inflation rate of 1.9%, marking the lowest inflation in nearly three years. This favorable development is expected to grant the Monetary Authority of Singapore some flexibility to ease its monetary policy during its upcoming review in January. Market analysts suggest, however, that they might take a cautious approach and delay such decisions until they can better understand the implications of foreign economic policies, particularly those of the newly elected U.S. President.
Current Central Bank Stance
During its review in October, the central bank opted to maintain its current policy position as economic indicators pointed towards an uptick in activity. The next policy review is anticipated before the end of the current month, continuing to keep a close watch on economic developments both domestically and globally.
Frequently Asked Questions
What was Singapore's GDP growth in 2024?
Singapore's GDP grew by 4.0% in 2024, a significant rise from 1.1% in 2023.
How did the fourth quarter perform in terms of GDP?
The fourth quarter GDP increased by 4.3% compared to the same period last year.
What is the current inflation rate in Singapore?
As of November, the annual inflation rate in Singapore stood at 1.9%, the lowest in almost three years.
What are the expectations for monetary policy in January?
Analysts anticipate that the Monetary Authority of Singapore may consider easing monetary policy in its January review, depending on economic conditions.
When will the next central bank review occur?
The next monetary policy review by the central bank is expected to take place before the end of the current month.
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