By Xinghui Kok
SINGAPORE (Reuters) – Singapore’s central financial institution mentioned on Monday it expects 2024 gross home product development on the higher finish of the two%-3% forecast vary, and for subsequent 12 months to have an identical development tempo.
In its macroeconomic overview launched on Monday, the Financial Authority of Singapore (MAS) mentioned financial development “strengthened decisively” within the third quarter and pegged the efficiency to restoration within the manufacturing sector, elevated buying and selling within the monetary sector and the return of Chinese language vacationers after a visa exemption began in February.
Preliminary information confirmed Q3 GDP was up 4.1% year-on-year after posting 2.7% development in Q2.
The central financial institution cautioned that 2025 has a danger of decrease development for Singapore, a trade-dependent regional monetary hub, due to heightened world uncertainties.
“The result of the upcoming U.S. presidential election, an escalation in geopolitical tensions together with within the Center East, or a sharper slowdown in China may adversely have an effect on world commerce and development, and in flip weigh on Singapore’s financial prospects,” mentioned the MAS.
“Moreover, the sturdiness of the AI-led world tech cycle restoration stays unsure and may very well be delicate to mixture demand situations.”
The MAS maintained that core inflation ought to ease to round 2% by the top of this 12 months regardless of inflation rising to 2.8% on an annual foundation in September after hitting a 2-1/2 12 months low of two.5% in July.
It expects core and headline inflation to common 1.5%–2.5% in 2025.
“Given the progressive decline in inflation, the dangers to Singapore’s inflation outlook are actually assessed to be extra balanced in comparison with earlier financial coverage opinions,” mentioned the MAS, which held its financial coverage settings once more this month in its final overview of the 12 months.
