ECONOMIC OUTLOOK FOR 2024
Since the release of the Economic Survey of Singapore in February 2024, MTI reported that the additional financial culture has remained tenacious.
It pointed to “better than expected” economic development in the United States and China in Q1 2024 that was  , mainly mainly to stronger- than- expected local need and physical demand both.
The worldwide electronics treatment, which was fueled by the strong need for AI-related chips, supported growth in local economies like South Korea and Taiwan, according to MTI.
The industry ministry predicted that the major markets ‘ GDP growth would “taper slowly in the immediate rooms due to tight financial situations, before picking up alongside anticipated policy rate reduces later in the year.”
MTI said that the US ‘ development outlook , improved substantially on account of the endurance in its employment market and an Iot- led growth in investments.
” However,  , the robust performance of the US economy in the first quarter, coupled with sticky inflation, is likely to lead to a delay in policy rate cuts by the US Federal Reserve”.
The US economy will be affected by higher interest rates for longer in the near future before easing monetary policy in the coming months will encourage a rise in growth, according to MTI.
Given sluggish external demand and restrictive financial conditions, industrial activity and investment are expected to remain weak in the Eurozone.
On the other hand, according to MTI, consumer spending is projected to increase more slowly in the second half of 2024 as a result of a gradual improvement in consumer confidence and anticipated policy rate reductions by the European Central Bank as inflationary pressures ease.
Due to the introduction of more government support measures, China’s GDP growth is likely to be stronger than expected.
In particular, its manufacturing investment is anticipated to remain robust as a result of the government’s support for the government’s announced trade-in program and its support for strategic manufacturing industries, while infrastructure investment will be boosted by government infrastructure spending.
According to MTI, “in addition, recently announced property market support measures are likely to help stabilize the property market, which should result in a modest recovery in consumption in the later part of the year.”
GDP growth in the majority of , Southeast Asian economies , is projected to be supported by resilient domestic demand, the continued recovery in tourism demand, as well as a pickup in external demand, it added.