Overview

• Singapore’s GDP contracted by 0.8% in Q1 2025, reversing a 0.5% expansion in Q4 2024, as trade tensions weigh on the economy.
• The Monetary Authority of Singapore maintained its 2025 GDP growth forecast at 0–2% but warned of significant downside risks from prolonged US-China trade conflicts.
• US tariffs, affecting 55% of Singapore’s exports to the US, are expected to create a negative income and demand shock, with potential restrictions on key sectors like semiconductors and pharmaceuticals looming.
• Rising unemployment and slower employment growth in Q1 reflect pressures on trade-related sectors, with broader labor market challenges anticipated.
• Global GDP growth is projected to slow to 2–2.5% in 2025, compounding Singapore’s export-reliant economy's vulnerabilities to external shocks.