Singapore’s economy grows by 4.3 % in the second quarter, overcoming expectations

The economy in Singapore grew by 4.3 % on an annual basis in the second quarter of 2025, accelerating from 4.1 % in the first three months and defeated expectations. Reuters poll for economists expect 3.5 % growth.

On the basis of a quarter of a quarter, GDP in Singapore has grown by 1.4 %, which is a 0.5 % transformation in the last quarter.

GDP growth by the manufacturing sector, which expanded by 5.5 % on an annual basis, led an increase of 4.4 % in the first quarter of 2025. 17 % of the country’s economy.

Despite the victory of GDP, Singapore The Ministry of Trade and Industry said in its issuance “There is still a state of uncertainty and negative risks in the global economy in the second half of 2025, given the lack of clarity on the policies of the customs tariffs of the United States.”

In April, MTI reduced the growth of GDP to 0 % -2 %, decreasing its previous 1 % -3 %. Singapore recorded the total GDP of the entire year by 4.4 % in 2024.

Unlike other countries in Southeast Asia, which was exposed to “tariff messages”, Singapore has not received such a “message” from US President Donald Trump.

However, Singapore is still facing the basic tariff by 10 % of the United States, despite the inclusion of a trade deficit with the United States and has a free trade agreement since 2004.

Singapore Economic Flexibility Squad, which was established in April in response to American definitions, Announced last week It will offer grants to help companies deal with the impact of global trade tensions.

The issuance of the gross domestic product also comes before the monetary policy decision by the country’s central bank later in July.

At its meeting in May, the Monetary Authority in Singapore Her policy has been reduced for a second in a row Time, saying: “There are negative risks to the economic expectations of Singapore caused by the financial market fluctuations rings and the hot decline expected in the final demand abroad.”

MAS also warned that sudden or continuous weakness in global trade will have a significant impact on the sectors related to trade in Singapore, and thus the wider economy.

However, the country’s inflation numbers support the reduction of prices.

The main inflation rate in Singapore decreased to 0.8 % in May, its lowest level since February 2021, while the basic inflation, which excludes private residence and transport, reached 0.6 % in May, compared to 0.7 % in the previous month.

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