Why did Singapore raise its 2024 growth forecast after Q2 results?

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Singapore Revised Economic Growth Forecast Upward Due to Stronger-Than-Expected Q2 Performance and Sectoral Optimism

Singapore has revised its economic growth forecast for the current year to between 2.0 per cent and 3.0 per cent, an upward adjustment from the earlier projection of 1.0 per cent to 3.0 per cent. This recalibration follows a second-quarter economic performance that exceeded expectations, registering a 2.9 per cent year-on-year growth. The revised outlook is further bolstered by a growing optimism regarding a gradual recovery within the manufacturing sector.
Second Quarter Growth Exceeded Projections

The city-state achieved a 2.9 per cent year-on-year economic expansion in the second quarter, a figure that surpassed initial estimates. This performance was an improvement from the first quarter's 3.0 per cent expansion and indicates a more robust economic momentum than previously anticipated. The resilience displayed in this period contributed significantly to the decision to upgrade the annual forecast.
Manufacturing Sector Poised for Recovery

There is a prevailing sense of optimism that the manufacturing sector, a crucial component of Singapore's export-driven economy, will experience a gradual recovery. Although manufacturing contracted by 1.0 per cent year-on-year in the second quarter, this decline was less severe than the 1.7 per cent shrinkage recorded in the first quarter, suggesting a potential turning point. This anticipated rebound in industrial output is a key factor supporting the brighter economic outlook.
Mixed Global Demand Outlook Anticipated

While demand from the United States is expected to ease due to slowing consumption and China's economy is forecast to grow at a slightly slower pace in the latter half of the year, the external demand outlook for Singapore is still projected to be resilient. This is supported by expectations of improved growth in the eurozone and a slight pickup in key Southeast Asian economies. These counterbalancing factors contribute to a stable external environment for Singapore's trade.

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Why did Singapore raise its 2024 growth forecast after Q2 results?

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