Singapore’s retail sector is expected to face a slowdown in sales growth in the second half of 2025, according to RHB’s latest economic research.
The report, released on 5 May, highlights that whilst retail sales are projected to remain robust through the first half of the year, economic challenges could dampen momentum in the latter half.
Retail sales in Singapore saw a 1.1% year-on-year increase in March, recovering from a 3.5% decline in February. However, on a month-on-month basis, sales fell by 2.8% in March, following a 3.0% growth in February. Barnabas Gan, RHB’s Group Chief Economist and Head of Market Research, noted that the retail climate is currently buoyed by government support measures outlined in Budget FY2025, upcoming retail events, and strong online sales.
Despite these positive indicators, Gan cautioned that “economic headwinds expected for the year ahead” could lead to a slowdown in retail sales growth in the second half of 2025. The report suggests that whilst the first half of the year will benefit from supportive factors, the latter half may not sustain the same level of growth.
The anticipated slowdown in retail sales is significant as it reflects broader economic trends and challenges that Singapore may face in the coming months. As the year progresses, stakeholders in the retail sector will need to navigate these potential headwinds to maintain stability and growth.
“`
