Written reply to PQ on impact of government-issued vouchers and credits on 2025 GDP growth

Question:

Ms He Ting Ru: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether there are estimates of how much of the reported 2025 GDP growth was driven by time-limited vouchers and credits that boost short-term consumer spending; (b) whether the Government has assessed what underlying the economic growth would have been without such measures; and (c) if so, what are these estimates and assessments.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.           Singapore’s GDP growth of 5.0 per cent in 2025 was largely driven by outward-oriented sectors. In particular, the manufacturing, wholesale trade and finance & insurance sectors saw strong growth on the back of the global AI investment boom, as well as resilient global trade and macroeconomic conditions. Collectively, they accounted for around 3.1 percentage-points, or 62.1 per cent, of the GDP growth in 2025. 

2.           The support measures for households and SG60 initiatives that were announced in Budget 2025 included CDC vouchers, SG60 vouchers and child LifeSG credits. These were introduced primarily to help Singaporean households defray living expenses and to share the benefits of our nation’s progress. 

3.           Consumer-facing sectors such as retail trade and food & beverage services that would benefit from these measures, collectively contributed about 0.04 percentage-point, or 0.7 per cent, of the GDP growth in 2025.