Overview

• Singapore’s economy grew by 3.9% year-on-year in Q1 2025, slightly exceeding earlier estimates of 3.8%, driven by wholesale trade, manufacturing, and finance sectors.
• The Ministry of Trade and Industry (MTI) maintained its 2025 GDP growth forecast at 0–2%, citing ongoing global trade uncertainties.
• Growth in manufacturing and wholesale trade was bolstered by front-loading activities ahead of anticipated US tariff hikes, but this boost is expected to fade in the second half of the year.
• MTI highlighted risks to outward-oriented sectors, with US tariff measures and slowing global demand likely to weigh on exports and related industries.
• Consumer-facing sectors, including retail and food services, are projected to see subdued growth due to weaker domestic spending and labor market conditions.