SINGAPORE: Singapore’s economy continues to grow in the second quarter of 2025 (2Q25), skirting a technical recession despite persistent global trade headwinds and US tariff uncertainty weighing on the export-reliant economy.
Based on advance estimates by the Trade and Industry Ministry (MTI), the economy grew 4.3% year-on-year (y-o-y) in 2Q25, extending the 4.1% growth in the previous quarter.
Analysts’ consensus estimate by Reuters was for a 3.5% growth in the 2Q25.
On a quarter-on-quarter (q-o-q) seasonally adjusted basis, the economy expanded by 1.4%, a turnaround from the 0.5% contraction in the 1Q25, MTI said on July 14.
Gross domestic product growth for 1Q25 was revised up to 4.1%, from the earlier estimate of 3.9%.
For the first half of 2025 (1H25), Singapore’s gross domestic product growth averaged 4.2% y-o-y.
“Looking forward, there remains significant uncertainty and downside risks in the global economy in the 2H25 given the lack of clarity over the tariff policies of the United States,” MTI said in a statement yesterday.
The manufacturing sector grew by 5.5% y-o-y in the 2Q25, faster than the 4.4% expansion in the previous quarter.
Growth was driven by output expansions across all clusters, except for the chemicals and general manufacturing clusters.
The construction sector expanded by 4.9% y-o-y in 2Q25, easing slightly from the 5.1% growth in the preceding quarter.
Among the services sectors, the wholesale and retail trade as well as transportation and storage sectors collectively grew by 4.8% y-o-y in 2Q25
This compares with the 4.6% growth in the previous quarter.
All sectors within the group expanded during the quarter.
Furthermore, 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.
Both segments were lifted by companies accelerating their purchases and shipments ahead of the end of a 90-day pause on US reciprocal tariffs.
The retail trade sector expanded on account of higher sales volumes in both the motor vehicle and non-motor vehicle segments.
The information and communications, finance and insurance, and professional services sectors expanded by 3.8% y-o-y in 2Q25, following the 3.7% growth in the previous quarter. — The Straits Times/ANN
