Overview

• The Monetary Authority of Singapore (MAS) reduced the rate of appreciation of its S$NEER policy band for the second time this year, citing economic uncertainty.
• Singapore's Q1 GDP growth slowed to 3.8%, down from 5% in the previous quarter, missing economists' expectations.
• The Ministry of Trade and Industry revised its 2025 GDP growth forecast to 0%-2%, down from the previous range of 1%-3%.
• Inflation projections for 2025 were lowered, with headline inflation now expected to average 0.5%-1.5%, reduced from an earlier forecast of 1.5%-2.5%.
• Global trade challenges, including U.S. tariffs and weaker demand from key trading partners, were identified as significant factors impacting Singapore's economic outlook.