This photo shows the Marina Bay beach hotel and gardens on the backdrop of the city skyline on June 27, 2025.
Roslan Rahman | AFP | Getty Images
Singapore’s economy grew 4.3% in the second quarter of the year, accelerating from 4.1% in the first quarter, surpassing expectations.
Advanced estimates are higher than 3.5% forecasts by economists surveyed by Reuters.
On a quarter-on-quarter basis, Singapore’s GDP grew 1.4%, a 0.5% turnover that contracted last quarter.
GDP growth was led by manufacturing, with the sector growing by 5.5% year-on-year, up from 4.4% in the first quarter of 2025. 17% of the country’s economy.
Despite the GDP defeat, Singapore’s Ministry of Trade and Industry said in the issuance “Looking forward, given the continued serious uncertainty and downside risks in the global economy in the second half of 2025, as there is a lack of clarity on US tariff policies”
Unlike other ASEAN countries that were hit by “tariff letters”, Singapore has not received a “letter” from US President Donald Trump.
But even if the country faces a trade deficit with the United States and has signed a free trade agreement since 2004, the country still faces a benchmark tariff of 10%.
The GDP release also leads the country’s central bank’s monetary policy decision in late July.
Singapore’s monetary authorities at the May meeting Release its second consecutive monetary policy Time said: “There is a downside risk in Singapore’s economic outlook, which is due to the onset of volatility in financial markets and the reduction in the final demand from abroad.”
MAS also warned that the sudden or continuous weakening of global trade will have a significant impact on Singapore’s trade-related sectors, and in turn have an impact on the broader economy.
Nevertheless, inflation in the country supports lower interest rates.
Since February 2021, Singapore’s title inflation has dropped to 0.8% in May, while core inflation excluding accommodation and private transport was 0.6% in May, compared with 0.7% in the previous month.
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