Singapore Elevates Economic Forecast Amid Trade Uncertainty

Singapore's Ministry of Trade and Industry upgraded its 2025 GDP growth forecast due to robust first-half performance, but warned of uncertainties caused by US tariffs. The economy's 4.3% growth in the first half stemmed from front-loading exports, though risks loom with future trade policies and global economic conditions.

In a surprising move, Singapore's Ministry of Trade and Industry (MTI) has elevated its economic growth forecast for 2025, bolstered by stronger-than-anticipated performance in the first half of the year. The GDP growth estimate is now set between 1.5% and 2.5%, up from the previous 0% to 2% range.

The uplift in prediction also highlights an impressive year-on-year growth spike of 4.4% in the second quarter. However, MTI cautioned that the economic outlook remains clouded by the potential impacts of US-imposed tariffs, which could dampen business activities and consumer spending.

Yet, the front-loading phenomenon, where companies accelerated exports to pre-empt tariff impacts, boosted manufacturing and made Singapore's exports soar by 5.2%. Despite these gains, significant uncertainties persist due to unpredictable US trade policies and possible geopolitical tensions affecting energy prices.

(With inputs from agencies.)