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The economy grew 5% year-on-year in Q4 2024, down from 5.7% in Q3. Quarter-on-quarter growth slowed to 0.5% from 3%.
Singapore’s Ministry of Trade and Industry (MTI) announced on Friday (14 February) that the country’s economy expanded by 4.4% in 2024, maintaining the gross domestic product (GDP) growth forecast for 2025 at "1% to 3%".
According to the Economic Survey of Singapore 2024, MTI highlighted that the in Q4 2024, Singapore economy expanded by 5% on a year-on-year basis, moderating from the 5.7% growth in the preceeding quarter.
On a quarter-on-quarter seasonally adjusted basis, the economy grew by 0.5%, slower than the 3% expansion in the previous quarter.
This comes after the ministry’s earlier report in January 2025, which stated that in Q4 2024, the economy grew by 4.3% compared to the same period last year, slower than the 5.4% growth in the previous quarter.
Singapore’s GDP growth in 2024 was driven by wholesale trade, finance & insurance, and manufacturing. The electronics sector and machinery trade saw strong growth due to a global tech rebound.
At the same time, finance & insurance benefitted from increased trading activity, boosting bank and fund manager revenues. In contrast, retail and F&B services shrank as more locals spent on overseas travel.
Singapore’s sectoral performance in Q4 2024
Manufacturing
The manufacturing sector grew by 7.4% year-on-year in the fourth quarter of 2024, following an 11.2% increase in the previous quarter. This strong performance was driven by output expansions in the electronics, transport engineering, and general manufacturing clusters.
On a quarter-on-quarter seasonally adjusted basis, the sector showed flat growth, a slowdown from the 11.7% expansion in the previous quarter.
For the full year of 2024, the sector expanded by 4.3%, marking a recovery from the 4.2% contraction in 2023.
Construction
The construction sector grew by 4.4% year-on-year in the fourth quarter of 2024, following a 5.6% increase in the third quarter. This growth was driven by expansions in both public and private sector construction output.
On a quarter-on-quarter seasonally adjusted basis, the sector grew by 0.3%, moderating from the 1.9% expansion in the previous quarter.
For the full year of 2024, the sector expanded by 4.5%, continuing the 5.8% growth seen in 2023.
Wholesale trade
The wholesale trade sector expanded by 6.7% year-on-year in the fourth quarter of 2024, extending the 6% growth in the third quarter. Growth was primarily supported by the machinery, equipment & supplies segment, which saw robust sales in electronic components and telecommunications & computers, as well as the fuels & chemicals segment, driven by higher wholesale sales of petroleum & chemicals.
On a quarter-on-quarter seasonally adjusted basis, growth in the sector was 0.9%, easing from the 1.3% expansion in the previous quarter. For the full year of 2024, the sector grew by 5.1%, up from the 0.9% expansion in 2023.
Retail trade
The retail trade sector contracted by 1.0% year-on-year in the fourth quarter of 2024, worsening from the 0.7% contraction in the previous quarter. The decline was primarily due to a drop in non-motor vehicle sales volume, which outweighed the increase in motor vehicle sales.
On a quarter-on-quarter seasonally adjusted basis, the sector shrank by 1.2%, reversing from the 1.3% growth in the third quarter. For the full year of 2024, the sector contracted by 0.4%, a pullback from the 2.8% growth in 2023.
Transportation & storage
Growth in the transportation & storage sector slowed to 3.7% year-on-year in the fourth quarter of 2024, down from 7.9% in the third quarter. The air transport segment recorded strong growth due to increases in both air cargo volume and the number of passengers at Changi Airport.
Similarly, the water transport segment expanded as container throughput and sea cargo at Singapore’s ports increased.
On a quarter-on-quarter seasonally adjusted basis, the sector contracted by 1.2%, a reversal from the 1.5% growth in the previous quarter.
For the full year of 2024, the sector expanded by 5.8%, up from the 3.5% growth in 2023.
Accommodation
The accommodation sector grew by 4.2% year-on-year in the fourth quarter of 2024, easing from 5.6% growth in the third quarter. Growth was supported by a recovery in international visitor arrivals.
On a quarter-on-quarter seasonally adjusted basis, the sector contracted by 0.2%, reversing the 2.4% expansion in the previous quarter.
For the full year of 2024, the sector grew by 7.1%, moderating from the 15.7% growth in 2023.
Food & beverage services
The food & beverage services sector shrank by 0.3% year-on-year in the fourth quarter of 2024, extending the 1.3% contraction in the preceding quarter. The decline was driven by lower sales volumes in fast-food outlets, cafes, food courts, and restaurants, which outweighed growth in food caterers.
On a quarter-on-quarter seasonally adjusted basis, the sector grew by 0.1%, slowing from the 0.8% growth in the previous quarter.
For the full year of 2024, the sector contracted by 0.9%, down from the 5.6% growth in 2023.
Information & communications
The information & communications sector expanded by 4.2% year-on-year in the fourth quarter of 2024, slightly improving from 4.0% growth in the third quarter. The IT & information services segment recorded strong growth, driven by robust demand for data hosting services and internet search engine activities.
On a quarter-on-quarter seasonally adjusted basis, the sector grew by 2.4%, an improvement from the 1.8% growth in the previous quarter.
For the full year of 2024, the sector grew by 5.0%, slowing from the 11.2% expansion in 2023.
Finance & insurance
The finance & insurance sector grew by 6.1% year-on-year in the fourth quarter of 2024, extending the 5.6% growth in the previous quarter. Growth was mainly supported by banking, fund management, and activities auxiliary to financial services, including payments processing. Net fees and commissions in banking and fund management grew strongly due to elevated trading activity.
On a quarter-on-quarter seasonally adjusted basis, the sector expanded by 5.3%, accelerating from the 0.5% growth in the previous quarter.
For the full year of 2024, the sector grew by 6.8%, up from 3.1% in 2023.
Real estate
The real estate sector saw growth of 3.5% year-on-year in the fourth quarter of 2024, up from 1% in the preceding quarter. The growth was supported by increased activity in the private residential, commercial, and industrial property segments.
On a quarter-on-quarter seasonally adjusted basis, the sector grew by 1.1%, similar to the 1.2% growth in the previous quarter.
For the full year of 2024, the sector expanded by 0.2%, down from 3.8% growth in 2023.
Professional services
The professional services sector grew by 0.6% year-on-year in the fourth quarter of 2024, extending the 1.2% growth in the third quarter. Growth was mainly driven by expansions in head offices, business representative offices, and management consultancy activities.
On a quarter-on-quarter seasonally adjusted basis, the sector grew by 0.3%, slower than the 1.5% growth in the previous quarter.
For the full year of 2024, the sector grew by 1.2%, easing from 3.4% growth in 2023.
Administrative & support services
The administrative & support services sector contracted by 0.6% year-on-year in the fourth quarter of 2024, a reversal from 1.1% growth in the previous quarter. The contraction was mainly due to a decline in the rental & leasing segment, which outweighed growth in other administrative & support services.
On a quarter-on-quarter seasonally adjusted basis, the sector shrank by 1.1%, worsening from the 0.2% contraction in the third quarter.
For the full year of 2024, the sector expanded by 0.5%, recovering from a 0.2% contraction in 2023.
Other services industries
The "other services industries" grew by 3.1% year-on-year in the fourth quarter of 2024, extending 2% growth in the previous quarter. Growth was led by health & social services and arts, entertainment & recreation.
On a quarter-on-quarter seasonally adjusted basis, the sector expanded by 1.4%, faster than the 0.6% growth in the preceding quarter.
For the full year of 2024, the "other services industries" grew by 3%, slowing from 4.6% growth in 2023.
Looking ahead: Economic outlook around the world for 2025
Singapore
In Singapore, the manufacturing and trade-related services sectors are expected to continue growing in 2025, though at a slower pace than in 2024. The electronics cluster will likely expand steadily due to robust demand for semiconductor chips, benefiting precision engineering and wholesale trade sectors.
Strong order books in aerospace and marine & offshore engineering will support growth in the transport engineering cluster.
Outward-facing services such as information & communications and finance & insurance are projected to perform well. Information & communications will be driven by continued demand for digital solutions, while finance & insurance will see stronger demand for cross-border transactions, especially in payments processing.
Consumer-facing sectors, including retail trade and food & beverage services, may experience slower growth, partly due to locals spending more overseas. However, the continued recovery in international visitor arrivals should provide some support.
Overall, barring any downside risks, Singapore’s economy is projected to grow by 1% to 3% in 2025.
Southeast Asia
Growth in Southeast Asia should remain steady in 2025, furled by improving domestic demand and a sustained recovery in tourism. This region’s economies are expected to continue their upward trajectory.
China
China's GDP growth is likely to moderate due to a slowdown in merchandise exports and investment growth, primarily driven by tariff hikes and industrial overcapacity.
US
In 2025, GDP growth in the US is projected to slow down, with private consumption growth expected to taper as the labour market eases. However, the outlook remains highly uncertain, depending on the policies of the new US administration.
Eurozone
GDP growth in the Eurozone is expected to improve in 2025, supported by stronger consumption and a gradual recovery in investments, aided by a more accommodative monetary policy.
Global uncertainties
Despite these regional outlooks, significant global uncertainties remain. Ongoing trade frictions and geopolitical risks could lead to higher production costs and increased economic policy uncertainty, dampening investment and trade.
Additionally, disruptions to the global disinflation process may tighten financial conditions, potentially impacting banking and financial systems.
Lead image and infographics: MTI
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