Singapore Downgrades 2025 GDP Growth Forecast to 0-2% Amid US-China Trade War

Singapore's Ministry of Trade and Industry has downgraded its GDP growth forecast for 2025 to a range of 0-2%, down from a previous estimate of 1-3%, primarily due to the impact of tariffs imposed by the US in the ongoing trade war with China. The Monetary Authority of Singapore has also eased monetary policy for the second consecutive time to address growing economic concerns. The ministry noted that the tariffs are expected to significantly dampen global trade and economic growth, adversely affecting external demand and key sectors such as manufacturing, finance, and insurance. Preliminary estimates indicate Singapore's economy grew by 3.8% year-on-year in the first quarter of 2025, a slowdown from 5% in the previous quarter. The ministry warned of further risks, including potential product-specific tariffs and a larger-than-expected pullback in economic activity due to heightened uncertainty. As a result, there is concern over diminished consumer and business confidence, potentially crimping domestic consumption and investment.