Singapore Q2 GDP Growth Exceeds Forecasts

Singapore's economy grew by 4.3% year-on-year and 1.4% quarter-on-quarter in Q2 2025, surpassing forecasts and avoiding a technical recession. The expansion was led by manufacturing, construction, and services, bolstered by front-loading of exports ahead of potential US tariffs. The financial sector achieved a milestone with assets under management exceeding S$6 trillion for the first time, though regulators warn recent growth may not persist. Both the Ministry of Trade and Industry and the Monetary Authority of Singapore highlighted significant downside risks for the rest of the year, citing global uncertainties and unresolved US tariff issues. Economists are revisiting their full-year growth projections, but official outlooks remain cautious. Authorities are prioritizing stress testing and prudent regulation to maintain financial and economic stability.