Singapore Economy Grows 4.3% Q2 Avoids Recession Amid Tariff Uncertainty

Singapore's economy avoided a technical recession in the second quarter of 2025, growing 1.4% on a seasonally adjusted annualized basis, surpassing forecasts and rebounding from a contraction in the first quarter. This growth was primarily driven by front-loading effects as manufacturers and service sectors rushed to fulfill export orders ahead of the implementation of higher US tariffs from August 1, imposed by President Donald Trump. The construction sector also contributed significantly, with public infrastructure projects boosting activity. Despite this rebound, the government and economists warn of significant uncertainty and potential slowdown in the latter half of the year, given the ongoing tariff risks and global economic challenges. Singapore's economy remains highly exposed to global trade fluctuations, with trade volumes roughly three times its GDP. Monetary authorities are expected to maintain cautious policy settings amid these uncertainties.