Singapore’s economic system grows 4.3% in second quarter, beating expectations

Singapore’s economic system grew at 4.3% yr over yr 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% yr over yr, 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 Business mentioned in its launch that “there stays important uncertainty and draw back dangers within the international economic system within the second half of 2025 given the shortage 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.

In contrast to different nations in Southeast Asia which have been hit with “tariff letters,” Singapore has not obtained such a “letter” from U.S. President Donald Trump.

Nonetheless, Singapore nonetheless faces the baseline 10% tariff from the U.S., regardless of operating a commerce deficit with the U.S. and having a free commerce settlement since 2004.

Singapore’s financial resilience activity 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 impression of world commerce tensions.

The GDP launch additionally comes forward of a financial coverage choice 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 ultimate demand overseas.”

The MAS additionally warned {that a} extra abrupt or persistent weakening in international commerce may have a big impression on Singapore’s trade-related sectors and, in flip, the broader economic system.

Nonetheless, the nation’s inflation numbers are supportive of a price lower.

Singapore’s headline inflation price 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 test again for updates.