Singapore Q2 GDP grows more than expected as key sectors show strength

Published 14/07/2025, 01:26
© Reuters.

Investing.com-- Singapore’s economy grew more than expected in the second quarter of 2025 amid resilient manufacturing and electronics exports despite tariff-related uncertainty, preliminary government data showed on Monday.

Gross domestic product rose 4.3% year-on-year, more than expectations of 3.5% and grew from the 3.9% seen in the prior quarter, advanced data from Singapore’s Ministry of Trade and Industry showed. 

GDP expanded 1.4% quarter-on-quarter, rebounding from a 0.5% contraction the previous quarter. The growth was much more than the expectations of a 0.7% rise. 

Manufacturing led the upturn as factories boosted output across most segments, while construction activity remained robust thanks to public sector projects, data showed.

Trade-related services accelerated as businesses rushed shipments ahead of potential U.S. tariff changes, with retailers also seeing stronger sales.

"Recent Singaporean activity data, including on industrial production and electronics exports, was better than our expectations given the easing in tariffs-related uncertainty," ING analysts had said in a note before the data release.

Tourism-related industries got a lift from returning international visitors, helping offset slower growth in some professional services.

"Looking forward, there remains significant uncertainty and downside risks in the global economy in the second half of 2025 given the lack of clarity over the tariff policies of the US," the ministry said in a statement.

 

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