Singapore’s full-year economic growth will come in closer to its potential rate of 2% to 3% and core inflation is expected to ease more significantly in the final quarter of the year, the head of its central bank said.

Monetary Authority of Singapore (MAS) managing director Chia Der Jiun, speaking at the release of the central bank’s annual report, said growth across major sectors of the city-state’s economy was expected to gradually return to pre-pandemic rates.

The GDP growth forecast is in the upper half of the Trade Ministry’s forecast range of 1% to 3% for the year, and compared with growth of 1.1% in 2023.

Chia told the media briefing that the MAS made a net profit of S$3.8 billion ($2.8 billion) in the 2023/24 financial year.

Assets under management in Singapore’s asset management industry grew 10% in 2023 to S$5.41 trillion, Chia said, noting that private markets had grown significantly.

“The wealth management industry has also grown in line with the asset management industry,” he said, adding that recent money laundering case had not changed the growth trajectory.

“Singapore continues to welcome legitimate wealth and will ensure that our processes and regime are supportive, whilst upholding high regulatory standards,” he said.