According to Singapore's Monetary Authority's Survey of Professional Forecasters, the Singaporean economy is expected to experience a slightly more accelerated expansion than originally anticipated for this year. They predict a growth rate of 2.4% in Gross Domestic Product (GDP) for 2024, a slightly quicker pace than the previous forecast of 2.3%. For the following year, GDP growth is expected to maintain this upward trajectory at a rate of 2.5%.
However, the outlook for inflation in 2024 has been downgraded in the survey, falling from 3.4% (as per the December survey) to a current estimate of 3.1%. Meanwhile, the core inflation outlook remains steady at 3.0%.
As it pertains to the labor market, respondents anticipate a 2.1% unemployment rate at the end of the year. Nevertheless, certain risks to Singapore's financial and lending conditions are expected to emerge, such as elevated inflation, increased geopolitical tensions, potential impacts from China, and possible stress in the global real estate market.
