Economists Maintain 2.6% Growth Forecast for Singapore in 2025: MAS Survey

Economists surveyed by the Monetary Authority of Singapore (MAS) have maintained their 2.6% growth forecast for 2025, according to the central bank's latest survey. This forecast aligns closely with the government's projected range of 1.0% to 3.0% growth for the year, as reported by Reuters.

The survey, conducted last month and released on Wednesday, reflects economists' expectations for continued economic expansion in Singapore, despite potential challenges. Geopolitical and trade tensions were identified as the most significant downside risks. The 2.6% forecast remains unchanged from the December quarter survey.

Singapore's economy grew by 4.4% in 2024. The MAS eased monetary policy in January in anticipation of slower inflation and growth this year. However, the survey reveals that less than 20% of economists anticipate further policy easing at the upcoming April review. Approximately 30% expect a policy change at the July review.

Forecasts for headline and core inflation in 2025 have also been revised downward. Economists predict headline inflation of 1.7% and core inflation of 1.5%, both lower than the previous survey's median forecasts. This aligns with the MAS's forecast of 1.0% to 2.0% for core inflation in 2025. In January, annual core inflation reached a more than three-year low of 0.8%.

The survey was conducted in mid-February, following the release of fourth-quarter GDP data.