3 catalysts that will accelerate Singapore's economic growth in 2024

Analysts expect GDP to grow by 3.0% next year.

Experts forecast Singapore's economy to grow by 3% in 2024, faster than the expected 1.5% growth in 2023.

According to RHB expert Barnabas Gan, three catalysts will accelerate Singapore's economic growth next year, one of which is the continued improvement in growth-related momentum in Global+ASEAN indicators.

Another catalyst is global central banks approaching their peak rate objective, meaning rate cuts in 2H24 may be on the table, said Gan.

The last catalyst, according to Gan, is "the hope for China to see a better economic prognosis will support global semiconductor demand."

In a separate statement, the Monetary Authority of Singapore said it also expects the economy to improve gradually in the second half of 2024.

MAS said its assessment for 2024 is more positive on the belief that Singapore’s major trading partners will “gradually pick up later in 2024 as inflation continues to ease” as the “electronics cycle turns up modestly, although the timing and extent of the recovery is subject to significant uncertainty."

For 2023, however, MAS' growth prospects remain muted.

UOB, for its part, predicts that 2023 GSP is likely to come in the "lower half" of 0.5%-1./5% range.