RHB Bank has announced that it is maintaining its forecast for Singapore’s GDP growth at 2.0% for 2025.
This decision comes amidst ongoing US-China trade negotiations, which present a potential downside risk to the economy. However, RHB suggests that these risks are likely to be limited, with the GDP potentially dipping only to a range of 0.5% to 1.0%.
The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlights that Singapore’s first quarter GDP for 2025 showed a year-on-year growth of 3.9%, slightly surpassing both RHB’s own projection of 3.6% and the Ministry of Trade and Industry’s (MTI) advanced estimate of 3.8%. This performance is seen as a positive indicator for the year ahead.
RHB also anticipates that the Monetary Authority of Singapore (MAS) will maintain its current policy parameters in the second half of 2025, reinforcing stability in the economic outlook. This expectation is based on the tapering growth risks as the year progresses.
The report underscores the resilience of Singapore’s economy in the face of external uncertainties, suggesting that the country’s economic fundamentals remain robust. As the year unfolds, the focus will be on how the global trade environment evolves and its impact on Singapore’s economic trajectory.
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