March 7, 2024 at 7:25 PM PST
Economists have revised their growth forecasts for Singapore’s first quarter, partly influenced by Taylor Swift’s Eras tour.
According to a Bloomberg survey, gross domestic product (GDP) is expected to expand by 2.9% in the three months ending March 31, marking the fastest growth in six quarters. Additionally, economists have raised their annual growth projection to 2.5% from the previously estimated 2.3%, aligning more closely with the government’s forecast range of 1%-3% for 2024.
The Singapore leg of Swift’s Eras tour consists of six concerts scheduled through March 9. DBS Bank Ltd. economist Han Teng Chua suggests that this will benefit Singapore’s hospitality, food & beverage, and retail sectors. Chua estimates that the concerts will contribute approximately S$300 million-S$400 million, or 0.2 percentage points of GDP, to Singapore’s economy in the first quarter, primarily driven by increased spending from foreign tourists attending the concerts.
However, the economic outlook for the trade-dependent economy remains uncertain due to global factors such as tight interest rates, China’s uneven recovery, and ongoing geopolitical risks.
An attendee poses for a photo during a Taylor Swift’s Eras Tour concert in Singapore on March 7.Photographer: Roslan Rahman/AFP/Getty Images
Shivaan Tandon, an economist at Capital Economics, anticipates a resurgence of weakness in the first half due to slower global growth impacting Singapore’s export-driven economy. However, Tandon suggests that growth is likely to gather momentum more steadily from the second half of the year.