Singapore Q3 GDP beats forecasts but growth slows as manufacturing stalls

Published 14/10/2025, 01:54
© Reuters.

Investing.com-- Singapore’s economy grew more than expected in the third quarter, but the year-on-year growth moderated compared to last quarter as manufacturing output stagnated, advanced government estimates showed on Tuesday.

Gross domestic product (GDP) expanded 2.9% year-on-year, above expectations for a 2.0% increase but much slower than the 4.5% growth recorded in the second quarter, the Ministry of Trade and Industry (MTI) stated on Tuesday.

On a quarter-on-quarter basis, GDP rose 5.4%, sharply higher than the 2.0% growth forecast and up from 1.5% in the previous quarter.

The slowdown was largely driven by a flat performance in the manufacturing sector, where declines in biomedical and general manufacturing output offset gains in electronics and transport engineering.

Construction activity remained a bright spot, supported by ongoing public infrastructure projects and firm private sector demand. However, growth in the sector moderated after a surge earlier in the year, suggesting that the post-pandemic recovery in building activity may be stabilizing.

Services continued to underpin the economy, expanding at a steady clip on the back of resilient financial, professional, and information technology-related activities.

Singapore’s central bank left monetary policy unchanged on Tuesday, as expected, keeping the current rate of appreciation for its Singapore dollar nominal effective exchange rate (S$NEER) policy band.

MTI said the preliminary figures were based on data from July and August and are subject to revision when more comprehensive statistics are released in November.

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