Singapore’s Economy Exceeds Expectations, Grows by 4.0% in 2024

Strong Economic Growth and Rising Real Income

Singapore’s economy grew by 4.0 per cent in 2024, exceeding expectations, according to Prime Minister Lawrence Wong. Wong, who is also Finance Minister, said that with the stronger economy, he expects the country’s real income to rise further.

“Unlike in many developed countries, we are not plagued by unemployment and stagnant wages. Most workers have received wage increases that outpace inflation, making them better off in real terms,” Wong said in his 2025 New Year message on Tuesday.

“Over the past decade, median income has risen by 2.2 per cent per annum above inflation,” Wong added.

GDP Growth and Future Plans

In November, the Trade and Industry Ministry (MTI) stated that Singapore’s gross domestic product (GDP) growth for 2024 was projected at around 3.5 per cent. The ministry will release its advance GDP estimates for the fourth quarter and the whole of 2024 on Thursday.

Looking ahead, the Prime Minister said he would outline the next steps of the Forward Singapore exercise in Budget 2025, which will be tabled in Parliament on February 18. He noted that among other things, the government aimed to sharpen Singapore’s economic competitiveness, create exciting opportunities and good jobs for Singaporeans, and continue to cushion the impact of the cost of living.

“We will provide more targeted help to those who find it harder to cope, especially older people and lower-income groups. But we will not neglect other segments, including the middle-income and middle-aged, who are caring for both elderly parents and young children,” he added.

Independence Anniversary and Reflection

Wong highlighted that 2025 also marks the 60th anniversary of Singapore’s independence. He said that while this is an occasion to celebrate, the milestone is, in fact, a time for reflection for Singaporeans on their shared values, who they are, and what they stand for.

“Importantly, it is an opportunity to envision how we can shape our future together,” he said.

Conclusion

Singapore’s strong economic growth and rising real income are a testament to the country’s resilience and adaptability. As the government looks to the future, it is committed to creating opportunities and good jobs for Singaporeans, while also addressing the challenges posed by the cost of living. The 60th anniversary of independence is a timely reminder of the importance of reflection and planning for the future.

FAQs

Q: What was Singapore’s GDP growth rate in 2024?
A: Singapore’s GDP growth rate in 2024 was 4.0 per cent, exceeding expectations.

Q: What are the government’s plans for the future?
A: The government plans to sharpen Singapore’s economic competitiveness, create exciting opportunities and good jobs for Singaporeans, and continue to cushion the impact of the cost of living.

Q: How will the government help those who are struggling to cope with the cost of living?
A: The government will provide more targeted help to those who find it harder to cope, especially older people and lower-income groups.