Economists Raise Singapore 2025 GDP Growth Forecast to 2.4%

Economists have raised their forecast for Singapore's 2025 economic growth to 2.4%, up from the previous 1.7%, following a stronger-than-expected 4.4% year-on-year expansion in the second quarter. This revision reflects improved performance in Singapore's manufacturing, construction, wholesale, and retail sectors, as well as higher expectations for non-oil domestic exports, now projected to grow 2.2%. Despite easing trade tensions due to recent U.S. trade deals, concerns remain over geopolitical risks, including tariffs on pharmaceuticals and semiconductors, along with potential global growth slowdowns and financial market volatility. Inflation is expected to remain subdued, with consumer prices forecast to rise moderately. The positive outlook also factors in a sustained upturn in the tech cycle and capital inflows, while some sectors like accommodation and food services see dimmer growth prospects. Overall, this forecast aligns closely with the Ministry of Trade and Industry's upgraded official growth range for 2025.