SINGAPORE, Sep 11 – A survey released by the Bank of Singapore on Wednesday showed that economists have raised their expectations for Singapore’s economic growth in 2024. Better-than-expected external growth is the primary positive driver of the economy.
An average of 21 economists surveyed by the Monetary Authority of Singapore (MAS) forecast the economy will grow 2.6% this year, compared with 2.4% in those surveyed in March and June. They also expect economic growth to be 2.5% in 2025.
Most economists surveyed by MAS did not expect any change in policy settings in the central bank’s October review. They expect the city-state’s economy to grow at an annual rate of 2.6% in the third quarter of this year.
The September survey showed economists raised their forecasts for 2024 growth in the finance and insurance, construction, wholesale and retail trade industries.
Last month, the trade ministry revised its 2024 GDP growth forecast range from 1.0% to 3.0% to 2.0% to 3.0%, as of second quarter GDP.The performance exceeded market expectations by 2.9%.
The median forecast for headline inflation in 2024 is 2.6%, down from 2.8% in the previous June survey. The median forecast for core inflation is 2.9%, slightly down from the 3.0% forecast in the previous survey.
Core inflation fell to 2.5% in July , the smallest annual increase in more than two years. The central bank estimates that core inflation will fall further in the fourth quarter of this year and expects core inflation to be between 2.5% and 3.5% this year.
In July, the HKMA kept its monetary policy settings unchanged. The government has not changed policy since tightening for the fifth consecutive time in October 2022 as widespread concerns about economic growth keep officials on edge.
