This photograph exhibits the Marina Bay Sands resorts resort and Backyard by the Bay domes backdropped with the town skyline in Singapore on June 27, 2025.
Roslan Rahman | Afp | Getty Photos
Singapore’s economic system grew at 4.3% yr over yr within the second quarter of 2025, accelerating from 4.1% within the first three months and beating expectations. Reuters ballot of economists had forecast a 3.5% progress.
On a quarter-on-quarter foundation, Singapore’s GDP grew by 1.4%, a turnaround from the 0.5% contraction final quarter.
The GDP progress was led by the manufacturing sector, which expanded 5.5% yr over yr, up from 4.4% within the first quarter of 2025. The sector makes up about 17% of the country’s economy.
Regardless of the GDP beat, Singapore’s Ministry of Trade and Industry said in its release that “there stays important uncertainty and draw back dangers within the international economic system within the second half of 2025 given the dearth of readability over the tariff insurance policies of the U.S.”
Again in April, MTI had downgraded the nation’s GDP progress to 0%-2%, down from its earlier forecast of 1%-3%. Singapore recorded a full-year GDP progress determine of 4.4% in 2024.
Not like different nations in Southeast Asia which have been hit with “tariff letters,” Singapore has not acquired such a “letter” from U.S. President Donald Trump.
Nonetheless, Singapore nonetheless faces the baseline 10% tariff from the U.S., regardless of working a commerce deficit with the U.S. and having a free commerce settlement since 2004.
Singapore’s financial resilience activity power, arrange in April in response to the U.S. tariffs, announced last week that it’s going to roll out grants to assist companies deal with the affect of worldwide commerce tensions.
The GDP launch additionally comes forward of a financial coverage resolution by the nation’s central financial institution later in July.
In its Might assembly, the Financial Authority of Singapore loosened its policy for a second straight time, saying that “there are draw back dangers to Singapore’s financial outlook stemming from episodes of monetary market volatility and a sharper-than-expected fall in remaining demand overseas.”
The MAS additionally warned {that a} extra abrupt or persistent weakening in international commerce can have a major affect on Singapore’s trade-related sectors and, in flip, the broader economic system.
Nonetheless, the nation’s inflation numbers are supportive of a charge minimize.
Singapore’s headline inflation charge fell to 0.8% in Might, its lowest degree since February 2021, whereas core inflation, which excludes lodging and personal transport, got here in at 0.6% in Might, in comparison with 0.7% the month earlier than.
—That is breaking information, please examine again for updates.