Singapore’s economy grew more than expected last year, data showed Friday, boosted by the trade and manufacturing sectors but officials warned about a “large cone of uncertainty” as the United States embarks on its tariffs campaign.
The city-state’s economic performance is often seen as a barometer of the global environment because of its heavy reliance on international trade but it is vulnerable to any standoffs triggered by U.S. President Donald Trump.
The 4.4% expansion recorded in 2024 was more than double the 1.8% seen the previous year and above the preliminary 4.0% released by the government in January.
Growth in the final quarter of last year came in at 5.0%, also surpassing preliminary estimates.
“Gross domestic product growth for the year was mainly driven by the wholesale trade, finance and insurance and manufacturing sectors,” the trade ministry said in a statement.
Manufacturing grew 4.3% over the 12 months, compared with a 4.2% contraction in 2023, helped by rising demand for computer chips, the ministry said.
The ministry maintained its forecast for 2025 economic growth of 1.0-3.0%.
However, it warned of “rising global economic uncertainty” amid trade war fears, saying it expected economic growth in key trading partners to ease.
“There is a large cone of uncertainty surrounding the outlook of the U.S. economy, with its trajectory depending on the policies of the new U.S. administration,” it said.
Uncertainties surrounding the global economy “remain significant, with the risks tilted to the downside”, the ministry warned, citing “ongoing trade frictions among major economies”.
“Lingering risks of escalation in geopolitical conflicts, could lead to higher production costs, as well as greater global economic policy uncertainty,” it added.
“These could in turn dampen global investment and trade, and weigh on global growth.”
Trump has unveiled a range of measures against its global trading partners since taking office to end what he says is years of countries taking advantage of the United States.
