Singapore Central Bank Predicts 2024 Growth Near 2-3% Potential Rate
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Singapore's Economic Outlook for the Year
In a recent statement, Singapore's central bank head announced that the country's full-year economic growth is anticipated to align closely with its potential rate of 2% to 3%. Core inflation is also projected to ease significantly in the final quarter of the year. This information was shared during the release of the Monetary Authority of Singapore's (MAS) annual report.
Economic Projections
MAS Managing Director stated that economic growth across major sectors in Singapore is expected to gradually return to pre-pandemic levels. The GDP growth forecast sits in the upper half of the Trade Ministry's projected range of 1% to 3% for the year, a notable increase compared to the 1.1% growth observed in 2023. This optimistic outlook is attributed to the gradual recovery of key economic sectors.
Financial Performance and Industry Growth
For the 2023/24 financial year, the MAS reported a net profit of S$3.8 billion. Furthermore, assets under management in Singapore's asset management industry experienced a 10% growth in 2023, reaching S$5.41 trillion. This growth spurt significantly involves private markets.
The wealth management industry has paralleled this growth, maintaining its trajectory despite recent adverse events such as a money laundering case. The central bank assured that Singapore remains a welcoming hub for legitimate wealth while upholding stringent regulatory standards.
Technological Investments
In alignment with its forward-looking vision, the MAS announced an additional commitment of S$100 million to bolster financial institutions' capabilities in quantum and artificial intelligence technologies. This substantial investment aims to enhance the technological prowess within the financial sector.
The outlined economic and financial projections, coupled with significant investment in cutting-edge technologies, indicate Singapore's centered vision on sustained growth and technological advancement.
