Muted outlook for Singapore consumer sector as inflation prompts belt-tightening

SINGAPORE’S consumer spending growth may stay slow in 2024 as inflationary pressures prompt belt-tightening. Some might also spend overseas instead, said economists and industry players.

The increase in outbound travel could be partly offset by increased visitor arrivals, which may, however, be limited by the strength of the Singapore dollar.

Mastercard Economics Institute, for instance, expects Singapore’s real consumer spending to grow 2.8 per cent in 2024, down from 3.5 per cent in 2023.