MalayMail/StraitsTimes-Apr 14
Singapore’s Ministry of Trade and Industry (MTI) has today revised its 2025 economic growth forecast downward to between 0.0 and 2.0 per cent, citing escalating global trade tensions and the impact of new tariffs imposed by the United States and China. The Straits Times reported that this marks a downgrade from the previous forecast range of 1.0 to 3.0 per cent, as Singapore braces for a potential slowdown in global economic activity triggered by the ongoing US-China tariff war. “MTI’s assessment is that the external demand outlook for Singapore for the rest of the year has weakened significantly. “This has led to a deterioration in the outlook of outward-oriented sectors in Singapore. In particular, the manufacturing sector is likely to be negatively affected by weaker global demand,” the ministry said in a statement.
It added that softer global trade would also dampen the wholesale trade and transportation and storage sectors, reducing demand for shipping and air cargo services. The finance and insurance sector is expected to experience reduced trading activity due to heightened market uncertainty, affecting revenues in banking, fund management, forex, and securities dealing. Weaker business sentiment and consumer spending are also likely to constrain capital investment and credit activity, with payment firms projected to see slower growth as a result. The decision to lower the gross domestic product (GDP) forecast was also based on the economy’s performance in the first quarter of 2025, which saw a 3.8 per cent year-on-year increase — below market expectations. On April 8, Singapore Prime Minister and Finance Minister Lawrence Wong acknowledged the uncertainty ahead, stating that while a recession is not guaranteed, Singapore’s growth will be significantly influenced by global conditions. Read more at:
