Strong AI-driven demand and construction growth lifted Singapore’s Q1 GDP to 6.0%, yet the currency showed no reaction.
Singapore’s first-quarter GDP growth was revised sharply higher to 6.0% year-on-year, driven by robust AI-related demand and strong construction and services activity. The upward revision reflects stronger-than-expected economic momentum in early 2024.
Inflation remains near the lower end of the Monetary Authority of Singapore’s forecast range, suggesting price pressures are contained despite the growth uptick. The central bank had previously signaled a cautious stance on monetary policy adjustments.
Despite the positive GDP data, the Singapore dollar showed little movement, indicating markets may be weighing other factors, including global monetary policy expectations.