8-3-2024 (SINGAPORE) The arrival of global superstar Taylor Swift and her highly anticipated Eras tour in Singapore has not only captivated fans but also provided a welcome economic boost to the city-state. Economists have upgraded their first-quarter growth forecast for the country’s economy, with some attributing the gains, in part, to the impact of Swift’s six-concert spectacle.
According to a Bloomberg survey, Singapore’s gross domestic product (GDP) is projected to expand by an impressive 2.9% in the three months ending on March 31, marking the quickest pace in six quarters. This positive outlook has prompted economists to revise their annual growth expectation upwards to 2.5%, inching towards the upper end of the government’s 1%-3% forecast for 2024.
The Singapore leg of Swift’s Eras tour, which runs until March 9, is expected to deliver significant benefits to the country’s hospitality, food and beverage, and retail sectors. DBS Bank economist Han Teng Chua estimates that the concerts could contribute between S$300 million and S$400 million (8-10 billion baht), or a substantial 0.2 percentage points of GDP, to Singapore’s economy in the first quarter alone.
“These would be mainly supported by higher foreign tourist spending, with a large number of overseas fans attending the Singapore concerts,” Chua explained, highlighting the influx of international visitors drawn to the city-state by the allure of Swift’s electrifying performances.
However, despite the short-term boost provided by the Eras tour, the outlook for Singapore’s trade-reliant economy remains fragile. Factors such as tight global interest rates, China’s uneven recovery, and lingering geopolitical risks continue to cast a shadow over the country’s economic prospects.
Shivaan Tandon, an economist at Capital Economics, cautioned, “We expect renewed weakness in the first half as slower global growth curtails activity in Singapore’s export-oriented economy.” Tandon added, “But growth should pick up more sustainably from the second half of the year.”
