Singapore’s economy grew a faster-than-expected 4.3 per cent in the second quarter year-on-year, preliminary government data showed on Monday, despite a dimming outlook due to global economic uncertainty.
The trade ministry’s advance estimate for gross domestic product in the April to June period compared to an expected expansion of 3.5 per cent, according to economists polled by Reuters.
On a quarter-on-quarter seasonally adjusted basis, GDP grew 1.4 per cent in the April to June period, the advance estimates showed, avoiding a technical recession after the first quarter’s revised 0.5 per cent contraction.
“The economy is holding up despite tariff and geopolitical shocks. The de-escalation in the US-China tariff war and front-loading of exports during the 90-day reprieve has cushioned the tariff shocks,” Maybank economist Chua Hak Bin said.
On Thursday, Trade Minister Gan Kim Yong said the economy likely held up well in the first half of 2025 as businesses took advantage of the pause in tariffs to front-load exports to the US, but warned that growth could slow in the next six to 12 months. The trade ministry in April downgraded the city state’s GDP forecast for 2025 to a range of 0 per cent to 2 per cent from 1 per cent to 3 per cent.
Singapore’s Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong said the economy likely held up well in the first half of 2025 as businesses took advantage of the pause in tariffs to front-load exports to the US. Photo: Reuters
Maybank’s Chua said his team’s forecast for Singapore’s GDP for 2025 is 2.4 per cent. He expects the central bank to maintain its monetary policy settings at the coming review this month, given the strength of the economy. US President Donald Trump notified more than 20 countries last week of tariffs of 20 per cent to 50 per cent that will kick in from August 1, warning that any reprisals would draw a like-for-like response.