This photograph reveals the Marina Bay Sands inns resort and Backyard by the Bay domes backdropped with the town skyline in Singapore on June 27, 2025.
Roslan Rahman | Afp | Getty Photos
Singapore’s economic system grew at 4.3% 12 months over 12 months within the second quarter of the 12 months, accelerating from 4.1% within the first quarter and beating expectations.
The superior estimates had been greater than the three.5% forecasted by economists polled by Reuters.
On a quarter-on-quarter foundation, Singapore’s GDP grew by 1.4%, a turnaround from the 0.5% contraction final quarter.
The GDP progress was led by the manufacturing sector, which expanded 5.5% 12 months over 12 months, 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 Trade stated in its launch that “Trying ahead, there stays important uncertainty and draw back dangers within the world economic system within the second half of 2025 given the shortage of readability over the tariff insurance policies of the U.S.”
In contrast to different ASEAN nations which have been hit with “tariff letters,” Singapore has not acquired such a “letter” from U.S. President Donald Trump.
Nevertheless, the nation nonetheless faces the baseline 10% tariff from the U.S., even because the nation runs a commerce deficit with the U.S. and has a free commerce settlement since 2004.
The GDP launch additionally comes forward of a financial coverage choice by the nation’s central financial institution later in July.
In its Could assembly, the Financial Authority of Singapore loosened its financial coverage for a second straight time, saying that “there are draw back dangers to Singapore’s financial outlook stemming from episodes of monetary market volatility and a sharper-than-expected fall in remaining demand overseas.”
The MAS additionally warned {that a} extra abrupt or persistent weakening in world commerce could have a major affect on Singapore’s trade-related sectors and, in flip, the broader economic system.
Nonetheless, the nation’s inflation numbers are supportive of a fee minimize.
Singapore’s headline inflation fee fell to 0.8% in Could, its lowest stage since February 2021, whereas core inflation, which excludes lodging and personal transport, got here in at 0.6% in Could, in comparison with 0.7% the month earlier than.
—That is breaking information, please test again for updates.
