Singapore’s economy recorded a year-on-year growth of 2.9% in the second quarter of 2024, surpassing economists’ expectations of 2.7%. This marks a slight decline from the revised growth rate of 3% in the previous quarter, according to advance estimates from the Ministry of Trade and Industry (MTI) released on July 12, 2024.

On a quarterly basis, the gross domestic product (GDP) rose by 0.4%, an increase from the previous quarter’s revised 0.3%. This positive performance has led several banks, including OCBC, DBS, and Maybank, to raise their GDP growth forecasts for Singapore.

The manufacturing sector saw a turnaround, growing 0.5% year-on-year after a decline of 1.7% in the previous quarter. Despite the overall expansion, the biomedical manufacturing and precision engineering clusters recorded decreases. Analysts suggest a potential normalization in the biomedical sector in the second half of the year, with the electronics cluster expected to drive recovery.

The construction sector also showed strong performance, expanding 4.3% year-on-year, up from 4.1% in the preceding quarter. This growth was bolstered by increased public-sector construction output.

Services growth, however, slowed to 3.3% in Q2, down from 4.3% in the previous quarter, with a notable moderation in the wholesale and retail trade and transportation sectors. The slowdown is attributed to a decrease in tourism-linked activities, which affected food services and accommodation growth rates.

Overall, Singapore’s economic performance in Q2 indicates resilience and a positive outlook for the remainder of the year, supported by strong manufacturing and construction sectors.