Gross domestic product advanced 2.1% in the three months through September from the prior quarter, the ministry of trade and industry said Monday. That compares with a 2% pace that economists had anticipated.

From a year earlier, the economy expanded 4.1% in the period, versus economists’ estimate of 3.8%.

The results show the economy has shifted to a stronger footing as the year has progressed. The city-state earlier this year narrowed its forecast for 2024 GDP growth to a range of 2%-3% from 1%-3% previously, in a sign the recovery will maintain its momentum.

“The manufacturing sector expanded by 7.5% year-on-year in the third quarter of 2024, rebounding from the 1.1% contraction in the previous quarter,” the ministry said in a statement. “The construction sector grew by 3.1% year-on-year in the third quarter, easing from the 4.8% growth in the preceding quarter.”

Uncertainties are clouding the horizon however as households grapple with cost-of-living pressures, while the upcoming US presidential election and a weaker Chinese economy remain cause for concern. Escalating tensions in the Middle East — with Singapore a major oil-importer — are also a potential threat.

Prime minister Lawrence Wong said in an Oct 2 video message that he expects inflation will ease further in coming months, thanks in part to initiatives to curb living costs for low-income households.

While Singapore’s core inflation, which excludes housing and private transportation, fell to its lowest level since 2022 in July, it accelerated to 2.7% in August, suggesting prices remain sticky.