Large concerts brought growth to Singapore in the first three months of the year.
Nikkei Asia reported that Singapore announced first-quarter GDP growth of 2.7% – matching previous forecasts thanks to a vibrant tourism sector ahead of concerts by American pop star Taylor Swift. in this island nation.
This figure surpasses the 2.2% GDP growth Singapore achieved in the last quarter of last year. Official data shows that the manufacturing and service industries of this Southeast Asian financial center grew by 3.9% over the same period last year, up from 2% in the previous quarter.
Taylor Swift fans sing outside the National Stadium before a concert in Singapore on March 8. (Photo: Nikkei).
Officials said that in the first quarter, the manufacturing sector decreased by 1.8% over the same period, mainly due to reduced output in the electronics industry amid weak demand for automotive and industrial chips. In contrast, the service sector saw an increase.
“The faster-than-expected recovery in air travel demand will continue to drive growth in related industries,” Mr. Gabriel Lim, permanent secretary of the Ministry of Commerce, said in an online press conference. to aviation and tourism, as well as consumer-facing sectors of finance and insurance will also benefit from higher travel spending.”
According to the Singapore Tourism Board, the country welcomed 4.35 million visitors in the first three months of the year, an increase of about 50% over the same period last year.
Taylor Swift isn’t the only star coming to Singapore. British rock band Coldplay performed in January and British singer-songwriter Ed Sheeran performed the following February. These shows have sparked debate in the region over whether Singapore is monopolizing the limelight when it comes to organizing major concerts.
Many tourists flocked to Singapore in March to watch Taylor Swift’s series of concerts – her only stop in Southeast Asia on her global tour. In a report in April, the Monetary Authority of Singapore (MAS) said that for performances by the American singer and the band Coldplay, “more than half of the audience could” be foreign tourists.
MAS noted in the report that private sector analysts estimate tourism revenue generated by large-scale concerts to range from 350 million to 450 million Singapore dollars (between 260 million and 330 million USD). ). However, the report also notes that this boom may not repeat itself in the near future.
“Growth in tourism-related industries is expected to taper off after the boost from concerts. Growth will still be supported by upcoming smaller-scale events, as well as a recovery continuous flow of Chinese tourists,” the report said.
Earlier this month, the Singapore Tourism Board raised its 2024 forecast to an estimated 15 million to 16.5 million international visitors, with tourism revenue from 27.5 billion to 29 billion Singapore dollars. This is up from previous estimates of between 15 million and 16 million arrivals and tourism revenue of between S$26 billion and S$27.5 billion.
However, the trade situation is not very bright. Singapore’s net non-oil exports (excluding oil) fell for the third consecutive month, down 9.3% year-on-year in April. In March, the decline was 20.8% . .
Singapore forecasts economic growth in 2024 at 1% to 3% amid expectations that electronics exports will recover in the second half of the year. GDP growth has decreased from 3.6% in 2022 to 1.1% in 2023.
“Economic growth in the US and China was better than expected in the first quarter, mainly thanks to stronger-than-expected domestic demand and external demand,” Singapore’s Ministry of Commerce said. “Major economic growth is expected to gradually decline in the coming quarters due to tightening financial conditions before rebounding with the expected policy rate cut later in the year.”
