(Bloomberg) -- Singapore’s economic growth accelerated in the third quarter, suggesting the recovery is gaining momentum in the face of tight monetary settings and intensifying geopolitical tensions.
Gross domestic product advanced 2.1% in the three months through September from the prior quarter, the Ministry of Trade and Industry said Monday. That compares with a 2% pace that economists had anticipated.
From a year earlier, the economy expanded 4.1% in the period, versus economists’ estimate of 3.8%.
The results show the economy has shifted to a stronger footing as the year has progressed. The city-state earlier this year narrowed its forecast for 2024 GDP growth to a range of 2%-3% from 1%-3% previously, in a sign the recovery will maintain its momentum.
“The manufacturing sector expanded by 7.5 per cent year-on-year in the third quarter of 2024, rebounding from the 1.1 per cent contraction in the previous quarter,” the ministry said in a statement. “The construction sector grew by 3.1 per cent year-on-year in the third quarter, easing from the 4.8 per cent growth in the preceding quarter.”
Uncertainties are clouding the horizon however as households grapple with cost-of-living pressures, while the upcoming US presidential election and a weaker Chinese economy remain cause for concern. Escalating tensions in the Middle East — with Singapore a major oil-importer — are also a potential threat.
Prime Minister Lawrence Wong said in an Oct. 2 video message that he expects inflation will ease further in coming months, thanks in part to initiatives to curb living costs for low-income households.
While Singapore’s core inflation, which excludes housing and private transportation, fell to its lowest level since 2022 in July, it accelerated to 2.7% in August, suggesting prices remain sticky.
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