RHB economists have revised Singapore’s Q2 2024 GDP growth forecast down to 2.6% year-on-year, citing a 3.9% decline in manufacturing output for June.
This projection is below the government’s advance estimate of 2.9% year-on-year growth provided by the Ministry of Trade & Industry (MTI).
Despite the lower Q2 outlook, RHB maintains a full-year GDP growth forecast of 2.5% but cautions about potential downside risks.
GDP Growth Forecast lowered to 2.6%
Concerns include a possible shift in manufacturers’ confidence, influenced by global economic uncertainties, particularly related to potential changes in U.S. trade policies.
Last week, reports say Singapore’s economy showed resilience in the second quarter of the year, expanding by 2.9% compared to the previous year, slightly exceeding forecasts.
This growth was largely propelled by a surge in construction, bolstered by increased public sector output, and robust performance in information, financial, and professional services sectors. Manufacturing also rebounded, contributing positively to the economic momentum.