DBS Reports Singapore Economy Expected To Double By 2040 With Dollar Parity Forecast

DBS Group Research projects that Singapore's economy will more than double by 2040, with GDP expected to rise from $547 billion in 2024 to between $1.2 and $1.4 trillion. The Straits Times Index, having recently broken above 4,000 for the first time in 17 years, could potentially climb to nearly 10,000, signaling strong investor confidence. The Singapore dollar is also forecasted to strengthen significantly, possibly achieving parity with the US dollar, supported by disciplined policies, steady capital inflows, productivity gains, and a robust current account surplus. The Monetary Authority of Singapore has introduced a S$5 billion equity market development program aimed at revitalizing capital markets and boosting liquidity, particularly in small- and mid-cap stocks. These developments underscore Singapore's growing stature as a safe-haven financial hub and its increasing influence in the regional and global economic landscape. While these forecasts are optimistic, they reflect a realistic confidence in Singapore's sustained economic growth and market expansion over the next 15 years.