Delivering his Budget 2024 speech today (Feb 16), Deputy Prime Minister (DPM) and Minister for Finance Lawrence Wong said Singapore’s economy grew by a modest 1.1 per cent in 2023, avoiding a recession.
Many households in Singapore are feeling the pressure of a higher living cost. Fortunately, though, Singapore’s economic rebound in the past two years has allowed the government to enhance its assistance measures to relieve the burden on households.
For 2024, the economic outlook is mixed — growth in major economies as a whole is expected to remain resilient. However, geopolitic risks continue to loom large, with wars raging in Europe and the Middle East. These conflicts can escalate dangerously, leading to disruptions in global energy markets and supply chains.
However, there are some upsides. DPM Wong expects global inflationary pressures to reduce, providing room for major central banks to adopt more accommodative stances. This can eventually help ease global financial conditions.
Overall, the government is cautiously optimistic that 2024 will be a better year. Besides lower inflation, DPM Wong expects higher GDP growth of 1 to 3 per cent.
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