Singapore’s Ministry of Trade and Industry has raised its GDP growth forecast for 2025 to 1.5%–2.5%, up from the earlier 0%–2% range. The revision reflects stronger performance in the first half of the year. The economy grew 4.4% in the second quarter and 4.1% in the first quarter, supported by robust exports and services.
Despite the upgrade, the ministry warns of global risks that could limit gains. Shifting U.S. trade policies and potential tariffs on semiconductors and pharmaceuticals may reduce demand from key export markets. Officials expect the manufacturing sector to slow as global trade weakens. The wholesale, transport, and storage sectors could also face challenges.
To protect the economy, the ministry will track global trends closely and adjust its forecast if conditions change. It noted that front-loading exports before potential tariffs gave a temporary boost, but the effect is likely to fade in the second half of the year.
The government is now pushing firms to strengthen resilience. Through the “Think Big Singapore” program, agencies are helping businesses diversify, digitalize, and expand into new markets. The initiative offers training, advisory support, and resources to help companies manage global shocks and stay competitive.
Economists believe the upgraded forecast reflects confidence in Singapore’s fundamentals. However, they caution that external risks—such as geopolitical tensions, trade barriers, and slowing global demand—could still weigh on growth.
Policymakers emphasize that agility and vigilance remain key to sustaining momentum. By combining proactive monitoring and targeted support, Singapore aims to maintain steady growth through 2025 despite an uncertain global outlook.
