The US and China together account for about 40% of the world economy. So, improved prospects in those economies matter a lot to the overall outlook.
After ending the year on a surprisingly strong footing, Singapore moves into 2025 in better shape than we had expected only a few weeks ago. Although the overall global environment continues to look troubled, at least there has been some good news on the US economy and even on China in recent weeks. In addition, we now know that Singapore’s economy enjoyed strong momentum in the final months of 2024, providing a firm foundation for the coming year. Finally, Singapore and Malaysia have agreed to move ahead with the proposed Johor-Singapore Special Economic Zone (SEZ), which we see as a strong positive in both the short and long term.
The world economy: Resilience in the US and stabilisation in China
