Singapore lifts 2025 growth forecast after Q3 GDP beats expectations

Singapore’s economy grew faster than expected in the third quarter, prompting the government to sharply upgrade its outlook for next year.

• Q3 GDP expanded 4.2% year-on-year, beating the Reuters poll of 4.0% and far above the earlier 2.9% advance estimate.
• Quarter-on-quarter growth rose 2.4% on a seasonally adjusted basis.

Buoyed by stronger global demand and better-than-expected growth among major trading partners, the Ministry of Trade and Industry lifted its 2025 GDP forecast to around 4.0%, up from the earlier 1.5%–2.5% range.

• Growth for 2026 is projected at 1.0%–3.0%.

However, officials warned that manufacturing and trade-related services are likely to expand at a slower pace in 2026, reflecting a more moderate global cycle. Enterprise Singapore narrowed its forecast for 2025 non-oil domestic exports (NODX) to around +2.5%, with 2026 NODX expected to grow 0.0% to +2.0%.

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The Monetary Authority of Singapore kept policy unchanged in October, citing resilient growth despite U.S. tariffs. While Singapore faces a 10% U.S. tariff on its exports—below the rates imposed on its regional peers—sector-specific levies, including a potential 100% tariff on branded pharmaceuticals, remain a key risk. Authorities have delayed implementation of the drug tariff to allow time for negotiation.

This article was written by Eamonn Sheridan at investinglive.com.