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This photograph exhibits the Marina Bay Sands accommodations resort and Backyard by the Bay domes backdropped with town skyline in Singapore on June 27, 2025.
Roslan Rahman | Afp | Getty Photographs
Singapore’s financial system grew at 1.4% within the second quarter of 2025, avoiding a technical recession because it reversed the 0.5% contraction recorded within the first three months of the yr.
On a year-over-year foundation, the nation’s financial system expanded 4.3% within the second quarter of 2025, accelerating from 4.1% within the first three months and beating expectations. A Reuters ballot of economists had forecasted a 3.5% progress.
A technical recession is usually outlined as two consecutive quarter-over-quarter declines in a rustic’s GDP. Analysts polled by Reuters had estimated a 0.6% quarter-over-quarter progress.
The GDP progress 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 financial system.
Regardless of the GDP beat, Singapore’s Ministry of Commerce and Trade stated in its launch that “there stays vital uncertainty and draw back dangers within the world financial system within the second half of 2025 given the dearth of readability over the tariff insurance policies of the U.S.”
Again in April, MTI had downgraded the nation’s GDP progress to 0%-2%, down from its earlier forecast of 1%-3%. Singapore recorded a full-year GDP progress determine of 4.4% in 2024.
In contrast to different nations in Southeast Asia which were 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 process drive, arrange in April in response to the U.S. tariffs, introduced final week that it’s going to roll out grants to assist companies deal with the influence of worldwide commerce tensions.
The GDP launch additionally comes forward of a financial coverage resolution 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 last demand overseas.”
The MAS additionally warned {that a} extra abrupt or persistent weakening in world commerce may have a major influence on Singapore’s trade-related sectors and, in flip, the broader financial system.
Nonetheless, the nation’s inflation numbers are supportive of a fee lower.
Singapore’s headline inflation fee fell to 0.8% in Might, its lowest degree 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.
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