2025 Kickoff: Singapore’s GDP, Tesla Deliveries, and the Big Picture on Global Growth

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🎉 Happy New Year, Money Masters! 🎉

We hope 2025 has started off on a high note for you! As we dive into the year, we’re here to remind you that our newsletter mission is simple: to keep you informed with the latest financial and economic news, all in just 5 minutes.

In today’s edition, we cover the challenges facing the U.S. bond market, Singapore’s impressive economic growth, Tesla’s latest delivery numbers, and more. Plus, in our Deep Dive, we break down what GDP is, why it matters, and how global economies performed in 2024. 🌍

📰 Your Daily Financial Digest - January 2nd, 2025

🌍 Economics & Finance:

Bond Market Faces Challenges as $3 Trillion in U.S. Debt Matures in 2025 📉
The U.S. Treasury's plan to shift short-term debt to longer maturities may stress the market amidst a $2 trillion budget deficit. Yields surged in late 2024, reflecting market concerns. Read More

Singapore's Economy Grows 4.0% in 2024 🚀
Economic growth accelerated from 1.1% in 2023, driven by improved GDP figures and easing inflation. Analysts expect the Monetary Authority of Singapore to consider monetary easing later in 2025. Read More

South Korea Ends 2024 with Record Exports 🌟
December exports grew 6.6%, marking the 15th consecutive month of increases. Despite record annual figures, risks loom with potential trade policy changes under the incoming U.S. administration. Read More

U.S. Blocks Nippon Steel's $14.9 Billion Bid for U.S. Steel 🇺🇸
Citing national security risks, President Biden rejected the acquisition, raising concerns about potential production cuts and foreign ownership of a critical industry. Nippon Steel had offered significant concessions, but these were deemed insufficient. Read More

Mortgage Demand Dives Nearly 22% Amid Rising Rates 🏠
The MBA reported a sharp 21.9% decline in mortgage applications for the last two weeks of 2024, driven by near-7% interest rates. Home purchases and refinances saw steep drops during the typically slow December period. Read More

Berkshire Hathaway Outpaces S&P 500 in 2024 🏆
Warren Buffett's conglomerate delivered a 25.5% return, supported by solid operating earnings and strategic divestments, including sales of Apple and Bank of America shares. Geico's turnaround bolstered performance. Read More

💻 Technology:

Alibaba Slashes AI Model Prices by Up to 85% 🤖
The company’s aggressive pricing strategy aims to dominate the enterprise AI segment amidst rising competition from Chinese tech giants like Tencent and Baidu. Read More

Hindenburg Shorts Carvana Stock, Alleges Loan Manipulation 📉
The short-seller accused Carvana of unstable loan practices and accounting tricks, leading to a 1.9% stock drop. Carvana refuted the claims, citing its strong public company history. Read More

💹 Earnings:

Tesla Reports First Annual Delivery Drop Since 2023 🚘
Deliveries for 2024 totaled 1.79 million, down from 1.81 million in 2023. The Q4 total of 495,570 vehicles missed Wall Street estimates, as Tesla faced rising competition and inventory issues. Read More

Ford and GM Post Best U.S. Vehicle Sales Since 2019 🚗
In 2024, Ford sold 2.08 million vehicles, a 4% year-on-year increase, with electrified vehicles accounting for 13.7% of sales. GM also saw a 4.3% rise in sales to 2.7 million units, with EV sales surging 50%. Read More

🔍 Deep Dive: Understanding GDP and Global Growth Trends 📊

What is GDP?
Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country’s borders over a specific period. It’s a vital indicator of economic health, helping policymakers, investors, and businesses assess a nation’s economic performance and living standards.

How is GDP Measured?
GDP is typically calculated in three ways:

1. Production: Measuring the output of industries.

2. Income: Summing wages, profits, and taxes minus subsidies.

3. Expenditure: Adding consumer spending, investments, government expenditure, and net exports.

Why Does GDP Matter?
GDP influences everything from government policies to investment decisions. A growing GDP indicates a healthy economy, fostering confidence, while a shrinking GDP often signals trouble. It also provides insights into the economic well-being of a nation’s citizens.

Singapore’s Stellar Growth in 2024 🌟

Singapore’s economy grew by 4% in 2024, exceeding the government’s forecast of 3.5% and marking its fastest growth in over a decade (excluding the post-pandemic rebound).

The final quarter saw a 4.3% year-on-year expansion, driven by robust performances in manufacturing (+4.2%) and construction (+5.9%), alongside strong growth in services like wholesale trade and transportation (+5.6%). Most employees enjoyed wage growth above inflation, reinforcing Singapore’s status as a standout among developed nations.

However, challenges loom, including potential global trade tensions and U.S. tariffs, which could test the resilience of this vibrant economy in 2025.

Global GDP Trends 🌍

Across the globe, economic performances varied widely:

China:
China’s GDP grew by 4.6% in 2024, falling short of its 5% target. A sluggish property market and weakening global demand hindered stronger growth, despite government stimulus efforts.

United States:
The U.S. economy grew 2.7% year-on-year in Q3, slightly below Q2’s 3%. Full-year growth of 2.9% reflects steady, albeit moderate, expansion.

India:
India’s GDP surged by 6.6%, driven by strong domestic consumption and infrastructure spending, making it a global leader in economic growth.

European Union:
The EU managed just 0.9% growth for 2024, with energy challenges and weak consumer demand dampening recovery.

Argentina:
Argentina saw a 3.8% contraction, weighed down by inflation and a debt crisis, despite a brief Q3 rebound.

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Not investment advice. Full disclosures here.

To your financial empowerment, The Money Masters Team

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Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.