Swift tour prompts economists to upgrade Singapore GDP forecast

Economists upgraded their first-quarter growth forecasts for Singapore, with some attributing the gains in part to Taylor Swift’s Eras tour, Report informs via Bloomberg.

Gross domestic product will probably expand 2.9% in the three months ending March 31, the quickest pace in six quarters, according to the median estimate in a Bloomberg survey. Economists also raised their annual growth expectation to 2.5% from 2.3% seen previously — toward the upper end of the government’s 1%-3% 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 & beverage, and retail activities, according to DBS Bank Ltd. economist Han Teng Chua.

“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.