Singapore's economy grew 2.7% in the first quarter of 2024, accelerating from 2.2% in the previous quarter. The growth is attributed to a 'strong' recovery in tourism, which has been buoyed by American pop star Taylor Swift's concerts in the city-state. The services-producing industries in Singapore grew 3.9% on the year from January through March, up from 2% the previous quarter. The increase in tourism activity, driven by Taylor Swift's concerts, has played a significant role in Singapore's economic rebound, boosting GDP growth and providing a much-needed boost to the country's economy. The finance and insurance, transportation and storage, and wholesale trade sectors were the primary drivers of this growth. On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 0.1%. Singapore maintains its GDP growth forecast for 2024 at a range of 1% to 3%. The external economic environment has remained resilient, with better-than-expected economic growth in the United States and China. However, there are still downside risks in the global economy, including geopolitical tensions and disruptions to the global disinflation process. Singapore's manufacturing and trade-related sectors are expected to see a gradual pickup in growth, with the electronics and chemicals clusters projected to expand. The finance and insurance sector will be supported by higher tourist spending and projected peaking of global policy interest rates. Singapore maintains its economic growth outlook for 2024 despite risks. The country's Ministry of Trade and Industry expects the economy to expand by 4-6% in 2024. The government is confident in the recovery of the global economy and the resilience of Singapore's domestic sectors. However, there are risks such as the ongoing COVID-19 pandemic and geopolitical tensions that could impact the economic outlook. The government will continue to monitor the situation and adjust policies if necessary. The Ministry of Trade and Industry also highlighted the importance of innovation and digitalization in driving economic growth.
In addition to Singapore's GDP growth, Nvidia, a leading technology company, reported record-high revenue of $26 billion in the first quarter of fiscal year 2025. The company achieved an operating profit of $16.9 billion and a net profit of $14.8 billion. Nvidia's strong financial performance reflects the growing demand for its products and services in the technology sector.
Meanwhile, Grab, a Southeast Asian ride-hailing and delivery company, also reported strong financial performance. Grab's revenue for the first quarter of 2024 increased by 24.4% year-on-year to $653 million. The company's operating loss narrowed to $75 million, and its net loss decreased to $104 million. Grab's Financial Services division saw revenue rise by 53% year-on-year to $55 million, with the loan portfolio increasing to $363 million. Grab's operating metrics improved, with on-demand gross merchandise value (GMV) rising by 18% year-on-year to $4.2 billion. The company's strong financial performance indicates its resilience and ability to adapt to changing market conditions.
These positive financial results from Nvidia and Grab, along with Singapore's GDP growth, contribute to a positive outlook for the economy and technology sector in Singapore. The country's government and businesses are optimistic about the recovery and future growth prospects, despite ongoing challenges and risks in the global economy.
Sources:
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