Monetary Authority of Singapore Forecasts Economic Improvement in Second Half of 2024 Amid Easing Inflation
Gravitation towards pre-COVID growth rates anticipated as Singapore's tech industry recovers; risks identified include geopolitical conflict, demographic constraints, and technology-induced displacement.
- The Monetary Authority of Singapore (MAS) forecasts economic growth to improve in the second half of 2024, with the global tech industry gradually emerging from its trough and global interest rates leveling off.
- Singapore's domestic sectors, particularly travel-related industries, saw significant growth after COVID-19 was declared endemic, with international visitor arrivals reaching 81% of pre-COVID levels.
- Core inflation, which excludes accommodation and private transport, is expected to decrease to between 2.5 and 3 per cent by December, down from a 14-year high of 5.5 per cent at the start of the year.
- MAS identifies geopolitical conflict, adverse weather events, and escalating wage increases as potential risks to the inflation outlook.
- Singapore's middle-income earners could potentially be impacted by demographic constraints and technological changes, suggesting the need for workers to refresh their skills and for policies to focus on increasing the absolute income of lower- and middle-income workers.
CNA 
Reuters 
South China Morning Post 
