New Delhi [India], May 23 : Singapore has maintained its GDP growth forecast for the year at 1 to 3 per cent, as its economy grew by 2.7 per cent year-on-year in the first quarter of 2024, Singaporean news publication CNA reported citing the Ministry of Trade and Industry's (MTI).
Earlier, in the Reuters poll, several economists had anticipated the growth to be around 2.5 per cent. But the final numbers have exceeded the projections. The economy grew 4.1 per cent year-on-year in the third quarter of 2022.
GDP growth in Q1 2024 was mainly driven by the finance and insurance, transportation and storage, and wholesale trade sectors, according to the Ministry of Trade and Industry (MTI) on Thursday (May 23), the publication cited.
The finance and insurance sector saw a 6.5 per cent year-on-year increase, up from 5.4 per cent in the previous quarter.
The growth was mainly pushed by the surge in transaction volumes across most asset classes, improved credit intermediation activity, and growth registered by the insurance sector.
The transportation and storage sector grew by 6.8 per cent YoY, compared to 2.8 per cent in the fourth quarter.
The share of air transport and water transport segment also surged which contributed to the growth.
The wholesale trade sector grew by 1.5 per cent year-on-year, up from 0.2 per cent in the previous quarter, the report further added.
The fuels and chemicals segment saw increased output in both the petroleum and petroleum products and chemicals and chemical products sub-segments, as well as metals, timber and construction materials, and household equipment and furniture.
Ministry of Trade and Industry (MTI) said, "On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 0.1 per cent, moderating from the 1.2 per cent growth in the preceding quarter"
The MIT underscored the factors better than expected economic growth in the United States, China in Q1 2024, and recovery in South Korea and Taiwan that helped in the growth numbers.
It also said that robust internal demand, the ongoing rebound in tourism demand, and a pick-up in foreign demand are expected to sustain GDP growth in most Southeast Asian economies.
The Middle East's geopolitical unrest and the conflict in Ukraine, which have the potential to destabilize global supply chains and commodities markets, are among the downside risks still facing the world economy, according to the Commerce Ministry.
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