This photograph reveals the Marina Bay Sands motels resort and Backyard by the Bay domes backdropped with town skyline in Singapore on June 27, 2025.
Roslan Rahman | Afp | Getty Photos
Singapore’s economic system grew at 4.3% 12 months over 12 months 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% development.
On a quarter-on-quarter foundation, Singapore’s GDP grew by 1.4%, a turnaround from the 0.5% contraction final quarter.
The GDP development was led by the manufacturing sector, which expanded 5.5% 12 months over 12 months, up from 4.4% within the first quarter of 2025. The sector makes up about 17% of the nation’s economic system.
Regardless of the GDP beat, Singapore’s Ministry of Commerce and Trade mentioned in its launch that “Trying ahead, there stays important uncertainty and draw back dangers within the world 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 development to 0%-2%, down from its earlier forecast of 1%-3%. Singapore recorded a full-year GDP development determine of 4.4% in 2024.
Not like different international locations in Southeast Asia which were hit with “tariff letters,” Singapore has not obtained such a “letter” from U.S. President Donald Trump.
Nevertheless, Singapore nonetheless faces the baseline 10% tariff from the U.S., even because the nation runs a commerce deficit with the U.S. and has a free commerce settlement since 2004.
Singapore’s financial resilience job power, arrange in April in response to the U.S. tariffs, introduced final week that it’ll roll out grants to assist companies deal with the influence of worldwide commerce tensions.
The GDP launch additionally comes forward of a financial coverage determination by the nation’s central financial institution later in July.
In its Might assembly, the Financial Authority of Singapore loosened its coverage for a second straight time, saying that “there are draw back dangers to Singapore’s financial outlook stemming from episodes of economic market volatility and a sharper-than-expected fall in remaining demand overseas.”
The MAS additionally warned {that a} extra abrupt or persistent weakening in world commerce can have a big influence on Singapore’s trade-related sectors and, in flip, the broader economic system.
Nonetheless, the nation’s inflation numbers are supportive of a fee minimize.
Singapore’s headline inflation fee fell to 0.8% in Might, its lowest stage 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 verify again for updates.