Mkoh
10-26
According to the analysis, Singapore's nominal GDP is expected to more than double from US$547 billion in 2024 to between US$1.2 trillion and US$1.4 trillion by 2040, driven by an average annual real GDP growth rate of 2.3%. On the currency front, DBS forecasts the SGD could reach parity with the USD—trading at 1:1—before or by 2040.
The SGD is already recognized as a regional safe haven, particularly in Asia, thanks to Singapore's political stability, fiscal discipline, low inflation, and robust monetary policy managed by the MAS through a managed float against a basket of currencies.
In summary, yes, SGD has strong potential to solidify as a "new" safe haven by 2040, evolving from its regional niche to a more global one, especially for USD diversifiers in emerging markets and Asia-Pacific portfolios. The DBS outlook underscores this through projected growth and inflows, but success hinges on Singapore maintaining its edge in productivity, openness, and neutrality




DBS Forecast: SGD = USD by 2040! Could SG Become Next “Safe Haven” Hub?
DBS Group Research just dropped a bold projection — by 2040, Singapore’s GDP could double, the Straits Times Index may hit 10,000, and the Singapore dollar (SGD) could reach parity with the US dollar. 1️⃣ Do you believe SGD can really reach parity with USD by 2040? 2️⃣ If the USD keeps sliding, would you increase your gold allocation? 3️⃣ How would you position your portfolio for a long-term USD downtrend?
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