MAS Forecasts Gradual Growth Improvement for Singapore in 2H 2024 Despite Global Economic Challenges

Global growth to slow in coming quarters, dragged down by G3 countries. China growth impacted by property sector & fiscal constraints.

Full-year 2023 GDP growth forecast at lower half of 0.5%-1.5%. Sectors to converge towards pre-Covid trends.

Electronics industry facing near-term headwinds but recovery in 2H 2024.

Financial services growth to stabilize as interest rates plateau.

Travel-related industries to taper off. Domestic-oriented sectors to normalize.

Labour market to soften but unemployment rate unlikely to rise. Wage growth to slow.

DBS economists notes signs of stabilization in electronics, cautious outlook on labor market.