Singapore's economy records 4.3% year-on-year growth in Q4 2024

For 2024 as a whole, the economy grew by 4%, faster than the 1.1% growth in 2023.

Singapore's economy grew by 4.3% year-on-year in Q4 2024, based on advance estimates released on Thursday (2 January 2025). This, the Ministry of Trade and Industry (MTI) noted, was slower than the 5.4% growth recorded in the previous quarter.

On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 0.1%, moderating from the 3.2% expansion in the third quarter. For 2024 as a whole, the economy grew by 4%, faster than the 1.1% growth in 2023.

How key sectors performed in Q4 2024

According to the estimates, Singapore's manufacturing sector grew by 4.2% year-on-year in Q4 2024, a slowdown from the 11.1% expansion recorded in the previous quarter. Output expansions in the electronics and transport engineering clusters were identified as key factors driving the growth.

On a quarter-on-quarter seasonally adjusted basis, the sector contracted by 2.5%, a reversal from the 12.8% expansion in the Q3 2024.

Looking at the construction sector – a year-on-year expansion of 5.9% was recorded in the quarter, faster than the 4.7% growth recorded in the preceding quarter. Growth during the quarter was due to an increase in public sector construction output.

On a quarter-on-quarter seasonally adjusted basis, the sector grew at a faster pace of 3.4%, compared to the 1.6% growth in the third quarter. Updates on performance across various services sectors are as follow:

Wholesale & retail trade and transportation & storage

The wholesale & retail trade and transportation & storage sectors collectively grew by 5.6% year-on-year in the fourth quarter, extending the 5.2% growth in the previous quarter.

All sectors within the group, except for the retail trade sector, recorded expansions during the quarter.

Growth in the wholesale trade sector was mainly driven by the machinery, equipment & supplies and "others" segments; while growth in the transportation & storage sector was largely supported by the storage & other support services, air, and water transport segments.

On a quarter-on-quarter seasonally adjusted basis, the wholesale & retail trade and transportation & storage sectors as a whole shrank by 0.2%, down from the 0.8% growth in the third quarter.

Information and communications, finance & insurance, and professional services

The group of sectors comprising information & communications, finance & insurance, and professional services expanded by 3.7% year-on-year in Q4, easing from the 4.3% growth in the previous quarter. All sectors within the group grew during the quarter.

Breaking the data down, growth in the information & communications sector was primarily driven by the IT & information services segment, while that in the professional services sector was largely supported by the head offices & business representative offices segment.

At the same time, the finance & insurance sector expanded mainly due to the strong performance of the banking, fund management and activities supporting the financial services (comprising mostly payments firms) segments.

On a quarter-on-quarter seasonally adjusted basis, the group as a whole grew by 3.8%, accelerating from the 1.5% expansion in the third quarter.

Accommodation & food services, real estate, administrative & support services and other services sectors

Finally, the remaining group of services sectors — comprising accommodation & food services, real estate, administrative & support services, and other services sectors — recorded a year-on-year expansion of 2.6% in the quarter, faster than the 1.4% growth recorded in the quarter prior.

Per the data, all these sectors grew in the period. In particular, the accommodation and arts, entertainment & recreation sectors expanded in tandem with the continued recovery in international visitor arrivals. On a quarter-on-quarter seasonally adjusted basis, the sectors in the group collectively grew by 0.4%,
moderating from a 1.2% expansion recorded in the third quarter.

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