Singapore GDP forecast gets a bump from Taylor Swift’s Eras Tour concerts
- Analysts estimated the shows would add 0.2 percentage points of GDP to the city state’s economy in the first quarter
- The six-day event is also expected to boost Singapore’s hospitality, food & drink, and retail sectors
Gross domestic product probably expanded 2.9 per cent in the three months ending March 31, the quickest pace in six quarters, according to the median estimate in a Bloomberg survey.
They also raised the annual growth expectation to 2.5 per cent from 2.3 per cent seen previously – towards the upper end of the government’s 1 per cent-3 per cent forecast for 2024.
The Singapore leg of the Eras Tour involves the singer performing six concerts through March 9. That carries benefits to Singapore’s hospitality, food & drink, and retail activities, according to DBS Bank Ltd. Economist Han Teng Chua.
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“These would be mainly supported by higher foreign tourist spending, with a large number of overseas fans attending the Singapore concerts,” said Chua, who estimates the shows to add around S$300 million-S$400 million, or 0.2 percentage points of GDP, to the city state’s economy in the first quarter.
Still, the outlook remains fragile for the trade-reliant economy, amid tight global interest rates, China’s uneven recovery and lingering geopolitical risks.
“We expect renewed weakness in the first half as slower global growth curtails activity in Singapore’s export-oriented economy,” said Shivaan Tandon, economist at Capital Economics.
“But growth should pick up more sustainably from the second half of the year.”
