Singapore’s economy grew 2.9% in the April-June quarter from a year earlier, matching the official advance estimate and above market expectations, government data showed.

The trade ministry said it had adjusted its GDP growth forecast range for 2024 to 2.0% to 3.0%, from 1.0% to 3.0% previously.

Economists in a Reuters poll forecast growth of 2.7% for the second quarter.

On a quarter-on-quarter, seasonally adjusted basis, GDP expanded 0.4% in the April to June period, also matching the advance estimate.

“On balance, Singapore’s external demand outlook is expected to be resilient for the rest of the year,” the trade ministry said, though it noted downside risks remained from any intensification of geopolitical and trade conflicts or if global financial conditions stayed tighter for longer than expected. “Against this backdrop, Singapore’s manufacturing sector is expected to see a gradual recovery in the second half of the year,” the ministry said.

Last month, the Monetary Authority of Singapore (MAS), the central bank, said it expected the economy to strengthen over the rest of 2024, with growth coming in closer to its potential rate of 2–3%.

For the whole of 2023, GDP grew 1.1%, slower than 3.8% in 2022.

The MAS left monetary policy settings unchanged last month in its third review of the year as inflation pressures continued to moderate and growth prospects improved.