Singapore's economic growth decelerated slightly in the second quarter, as anticipated, and the GDP forecast for 2024 has been revised, according to the Ministry of Trade and Industry's latest data released on Tuesday.
The gross domestic product (GDP) increased by 2.9 percent year-over-year, following a 3.0 percent growth in the previous quarter, consistent with earlier flash estimates.
The sectors contributing significantly to GDP growth during this period were finance and insurance, wholesale trade, and information and communications, according to the Ministry.
Quarter-on-quarter, the seasonally adjusted economic growth rate held steady at 0.4 percent in the June quarter.
From an expenditure perspective, total demand surged 7.7 percent annually in the second quarter, fueled by both domestic and foreign demand. External demand increased by 7.5 percent, while domestic demand rose by 8.1 percent.
Within the domestic demand category, growth in consumption expenditure moderated to 5.8 percent from 6.3 percent. The overall increase was driven by higher private and public consumption.
Additionally, gross fixed capital formation rebounded with a 1.7 percent increase, reflecting higher investments in both the public and private sectors.
Looking ahead, Singapore's external demand outlook is expected to remain resilient for the remainder of the year, although global economic risks persist. On the production side, the manufacturing sector, particularly the electronics cluster, is projected to experience a gradual recovery in the latter half of 2024, supported by strong demand.
Considering Singapore's economic performance in the first half of 2024 and the current global and domestic economic conditions, the Ministry of Trade and Industry has revised the GDP growth forecast for 2024 from an initial range of 1.0 to 3.0 percent to a narrower range of 2.0 to 3.0 percent.
