Key View
- Advance estimates showed that Singapore’s economy grew by 2.9% y-o-y in Q2 2024, surpassing both our and the consensus forecasts. Manufacturing emerged as the main contributor to seasonally adjusted q-o-q growth.
- We expect the momentum in manufacturing to persist. As such, we have revised our 2024 growth forecast up from 2.0% to 2.6%.
- We also expect major economies to remain resilient in 2025, which should support a broadly stable growth rate of 2.4% in Singapore.
Advance estimates released on July 12, showed that Singapore’s economy grew by 2.9% y-o-y in Q2 2024, easing only slightly from the upwardly revised 3.0% growth (previous: 2.7%) in Q1 and surpassing our forecast of 2.4% and the consensus expectation of 2.7%.
On a seasonally adjusted (s.a.) q-o-q basis, the economy grew by 0.4%, inching up from 0.3% in Q1. All sectors contributed to growth in Q2 (see chart below). Manufacturing, which was the main drag in Q1, emerged as the main growth driver with a contribution of 0.13 percentage points (pp) to q-o-q s.a. growth. The sector has benefitted from an upturn in the global semiconductor cycle, which has helped to offset weaker biomedical manufacturing output.
