Singapore upgrades 2024 economic growth forecast

The trade ministry said it sees the export-driven economy growing 2.0-3.0 percent this year, compared with a previous projection of 1.0-3.0 percent.

It grew 1.1 percent last year and 3.8 percent in 2022.

The city-state's economic performance is often seen as a barometer of the global environment because of its reliance on international trade.

It grew 2.9 percent on-year in April-June, trade ministry data showed Tuesday, better than the 2.7 percent estimated and following the 3.0 percent expansion seen in the previous three months.

Among key export markets, the ministry said demand from the United States was seen easing gradually on slowing consumption, while China's economy is forecast to "expand at a slightly slower pace" in the second half.

However, growth in the eurozone was forecast to improve, while key Southeast Asian economies are tipped to pick up slightly.

"On balance, Singapore's external demand outlook is expected to be resilient for the rest of the year," the trade ministry said.

It also noted possible headwinds including the potential "intensification of geopolitical and trade conflicts" and tighter financial conditions that could "trigger market volatility or latent vulnerabilities in banking and financial systems".

Manufacturing, a key economic pillar, contracted 1.0 percent on-year in the second quarter, hit by weak output in pharmaceuticals.

However, that was narrower than the 1.7 percent shrinkage in the first quarter.