Singapore’s economy is projected to grow by 2.0% in 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, suggests that there is an upside risk for growth to reach 3.0%, driven by improved global trade conditions and a resilient domestic economy.
The report outlines three key factors supporting the potential for increased growth: greater clarity on tariff rates among major global trading partners, an improved risk appetite, and strong year-to-date GDP growth in Singapore. Despite these positive indicators, RHB remains cautious in upgrading its forecast due to ongoing uncertainties in global trade policies, particularly between the US and key economies like China and India.
Singapore’s GDP for the second quarter of 2025 was reported at 4.4%, slightly surpassing the Ministry of Trade and Industry’s advanced estimate of 4.3% and RHB’s own projection of 4.2%. The first half of 2025 saw an average GDP growth of 4.3% year-on-year.
Gan emphasises the need for caution, citing potential challenges in the latter half of the year, including fading export front-loading and possible payback effects from the first half of 2025. The report also notes uncertainties in US trade policies, particularly sectoral tariffs on pharmaceuticals and semiconductors, as factors that could impact Singapore’s economic outlook.
Overall, whilst the report maintains a conservative stance on Singapore’s GDP growth, it acknowledges the potential for positive developments should global trade conditions continue to improve.
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