The Ministry of Trade and Industry (MTI) has announced an upgrade to Singapore’s GDP growth forecast for 2025, revising it from an initial range of 0.0-2.0% to 1.5-2.5%. This adjustment comes as a result of the country’s stronger-than-anticipated economic performance in the first half of the year. However, the outlook for the remainder of the year remains uncertain, with potential risks on the horizon.
In the second quarter of 2025, Singapore’s economy grew by 4.4% year-on-year, building on the 4.1% growth seen in the previous quarter. On a quarter-on-quarter basis, the economy expanded by 1.4%, reversing a 0.5% contraction in the first quarter. Key sectors driving this growth included wholesale trade, manufacturing, finance and insurance, and transportation and storage. The wholesale trade and transportation sectors benefited from increased activities ahead of US tariff implementations.
Despite the positive start to the year, MTI warns of potential challenges ahead. The global economic environment remains fraught with uncertainties, particularly due to the unpredictable nature of US trade policies and the impact of reciprocal tariffs. These factors could dampen growth in the second half of the year, especially in outward-oriented sectors like manufacturing and wholesale trade.
MTI will continue to monitor global and domestic economic developments closely, ready to adjust forecasts as necessary. The ministry highlights the importance of remaining vigilant amidst the evolving economic landscape.
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