— Bloomberg
SINGAPORE: Singapore's economy grew by 4.3 per cent on a year-on-year (y-o-y) basis in the second quarter of 2025 (2Q 2025), extending the 4.1 per cent growth recorded in the previous quarter.
According to the republic’s Ministry of Trade and Industry (MTI) advance estimates released today, the economy expanded by 1.4 per cent on a quarter-on-quarter seasonally adjusted basis, a turnaround from the 0.5 per cent contraction in the first quarter of 2025.
"For the first half of 2025 as a whole, gross domestic product (GDP) growth averaged 4.2 per cent y-o-y. Looking ahead, significant uncertainty and downside risks remain in the global economy in the second half of 2025, given the lack of clarity over the tariff policies of the United States,” said MTI in a statement.
The GDP estimates for 2Q 2025 were primarily based on data from the first two months of the quarter and are subject to revision when more comprehensive data become available.
On sectoral performance, MTI said the manufacturing sector grew by 5.5 per cent y-o-y in 2Q 2025, outpacing the 4.4 per cent expansion in the previous quarter.
"Growth was driven by output expansions across all clusters, except for the chemicals and general manufacturing clusters,” it said.
The construction sector expanded by 4.9 per cent y-o-y in 2Q 2025, easing slightly from the 5.1 per cent growth in the preceding quarter, supported by an increase in public sector construction output.
Among the services sectors, the wholesale and retail trade, and transportation and storage sectors collectively grew by 4.8 per cent y-o-y in 2Q 2025, extending the 4.6 per cent growth seen in the previous quarter.
MTI said all sectors within the group expanded during the quarter. Growth in the transportation and storage sector was mainly driven by the water transport segment, while that in the wholesale trade sector was led by the machinery, equipment and supplies segment.
"These segments were in turn partly boosted by front-loading activities in the region ahead of the expiration of the 90-day pause in the United States’ reciprocal tariffs,” the ministry added.
The information and communications, finance and insurance, and professional services sectors expanded by 3.8 per cent y-o-y in 2Q 2025, following the 3.7 per cent growth in the previous quarter.
Meanwhile, the accommodation and food services, real estate, administrative and support services, and other services sectors grew by 3.4 per cent y-o-y in 2Q 2025, up from the 2.3 per cent growth in the preceding quarter.
"All sectors within the group posted expansions during the quarter. In particular, growth in the accommodation sector was supported by the y-o-y increase in international visitor arrivals,” said MTI.
The MTI will release the preliminary GDP estimates for 2Q 2025-including performance by sectors, sources of growth, inflation, employment and productivity-in the Economic Survey of Singapore in August. - Bernama
