Singapore’s economy has demonstrated resilience in the face of global uncertainty, particularly due to U.S. President Donald Trump’s tariffs.
According to official data, the city-state’s economy grew 4.3 per cent year-on-year in the second quarter of 2025, extending the 4.1 per cent expansion in the first quarter.
This translated to a 1.4 per cent quarter-on-quarter growth, reversing the 0.5 per cent contraction in the first three months of the year.
According to the data, manufacturing sector expanded 5.5 per cent year-on-year in Q2 2025, up from 4.4 per cent in the previous quarter, driven by businesses rushing to beat the imposition of higher U.S. tariffs.
This sector is crucial for Singapore’s semiconductor exports.
Services sector grew 4.1 per cent year-on-year in Q2 2025, with notable expansions in wholesale and retail trade of 4.8 per cent growth, driven by increased sales volumes in motor vehicles and non-motor vehicles.
The data also showed that Information and communications supported by strong demand for IT and digital solutions.
It showed that finance and insurance was driven by banking activities and auxiliary financial services.
Despite the positive growth, the government has warned of “significant uncertainty” due to the lack of clarity over U.S. tariff policies.
Singapore’s heavy reliance on international trade made it vulnerable to global economic slowdowns.
The U.S. has imposed a baseline 10 per cent tariff on Singapore, and further tariffs are possible, including a threatened 30% toll on imports from the European Union.
The government expects the economy to grow 0-2.0 per cent this year, a downgrade from its previous forecast of 1-3 per cent.
Some economists predicted a slightly better performance, with Maybank forecasting 3.2 per cent growth and OCBC predicting 2.1 per cent growth.
Meanwhile, Singapore’s stock market is set to receive a boost with the debut of NTT DC REIT, a real estate investment trust focused on data centers. Valued at US$773 million.
This IPO is expected to be the largest listing on the Singapore Exchange (SGX) in eight years, providing a much-needed injection of activity.
