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The Ministry of Trade and Industry (MTI) announced that Singapore’s Gross Domestic Product (GDP) grew by 2.9% year-on-year in the second quarter of 2024, following a 3.0% growth in the previous quarter. The tech and digital sectors played a pivotal role in this economic expansion.
The Information & Communications, Finance & Insurance, and Professional Services sectors collectively surged by 5.6% year-on-year in the second quarter, maintaining the robust growth seen in the previous quarter. This group was driven by significant demand for IT and digital solutions. The professional services sector also experienced substantial growth, particularly within head offices and business representative offices.
The Information & Communications sector saw continued strong demand for IT and digital solutions, underscoring the increasing reliance on digital transformation across various industries. This growth reflects the sector’s critical role in driving innovation and efficiency in Singapore’s economy.
The Finance & Insurance sector experienced steady growth, supported by activities auxiliary to financial services, banking, and fund management segments. This sector’s expansion highlights Singapore’s position as a leading financial hub in the region, benefiting from advancements in financial technology and digital banking services.
Within the Professional Services sector, the head offices and business representative offices segment led the growth. This segment’s expansion underscores the increasing importance of Singapore as a strategic base for multinational corporations seeking to manage their regional and global operations efficiently.
On a quarter-on-quarter seasonally-adjusted basis, the digital sector expanded by 1.4%, a notable recovery from the 2.8% contraction in the preceding quarter. This turnaround indicates the sector’s resilience and its vital role in driving Singapore’s economic growth amidst global uncertainties.
The Economic Survey of Singapore 2023 released in February this year showed that the Information & Communications sector in Singapore demonstrated robust performance in the second quarter of 2024, continuing its critical role in driving the nation’s economic growth. This sector’s expansion was primarily driven by strong demand for IT and digital solutions, reflecting the increasing reliance on technology across various industries.
The IT & information services segment experienced significant growth, expanding by 8.8% in 2023. This was largely fueled by heightened enterprise demand for digital solutions and services, underscoring the sector’s pivotal role in facilitating digital transformation.
The telecommunications segment showed modest growth of 0.5%. Mobile subscriptions increased by 1.6%, with a substantial rise in 5G subscriptions by 72.5%, reaching approximately 1.8 million. However, broadband subscriptions declined by 2.9%, primarily due to a decrease in corporate and wireless broadband subscriptions, despite a slight increase in residential wired broadband subscriptions.
The Information & Communications sector as a whole grew by 5.7% for the year, although this marked a slowdown compared to the 8.1% growth recorded in 2022. This deceleration indicates a normalisation following the rapid growth phase driven by the pandemic-induced digital acceleration.
The Information & Communications sector’s performance highlights its integral role in Singapore’s economy, driving innovation and efficiency. The strong growth in IT services and the widespread adoption of 5G technology demonstrate the sector’s adaptability and capacity to meet the evolving demands of businesses and consumers. Despite some areas of slowdown, the overall positive trajectory underscores the sector’s resilience and importance in supporting Singapore’s economic expansion.
The preliminary GDP estimates for the second quarter of 2024 will be detailed in the Economic Survey of Singapore, set for release in August 2024. This report will include comprehensive performance data by sector, sources of growth, inflation, employment, and productivity.
