MTI Upgrades 2025 GDP Growth Forecast to “1.5 to 2.5 Per Cent”

12 August 2025. The Ministry of Trade and Industry (MTI) announced today that Singapore’s GDP growth forecast for 2025 has been upgraded from “0.0 to 2.0 per cent” to “1.5 to 2.5 per cent”. This largely reflects the better-than-expected performance of the Singapore economy in the first half of 2025. However, the economic outlook for the rest of the year remains clouded by uncertainty, with the risks tilted to the downside.

Economic Performance in Second Quarter 2025

In the second quarter of 2025, the Singapore economy grew by 4.4 per cent on a year-on-year basis, extending the 4.1 per cent growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted basis, the Singapore economy expanded by 1.4 per cent, a reversal from the 0.5 per cent contraction in the first quarter. For the first half of 2025, Singapore’s GDP growth came in at 4.3 per cent year-on-year.

On a year-on-year basis, GDP growth in the second quarter was primarily driven by the wholesale trade, manufacturing, finance & insurance, and transportation & storage sectors. In turn, the wholesale trade and transportation & storage sectors were boosted by front-loading activities in the region ahead of the implementation of tariff measures by the US. On the other hand, the food & beverage services sector shrank, due in part to a sustained increase in outbound travel by locals.

Download the full press release [PDF, 303 KB].

Economic Survey of Singapore Second Quarter 2025

MINISTRY OF TRADE AND INDUSTRY
12 AUGUST 2025