Singapore's Straits Times reports on the front page: Singapore raises its GDP growth forecast for 2025 to around 4%
This revision is due to better-than-expected performance in the third quarter, but it is expected that the growth rate will slow down in 2026.
After performing better than expected in the third quarter, Singapore has raised its growth forecast for 2025, although it is expected that the growth rate will slow down in 2026 due to the impact of US tariff policies.
The Ministry of Trade and Industry (MTI) stated on November 21 that it has raised the growth forecast for Singapore's gross domestic product (GDP) for 2025 from 1.5% to 2.5% to 3% to 4%.
This is the first time the growth forecast for 2025 has been revised upwards; previously, the year-on-year growth rate for Singapore's economy in the first quarter of 2025 was 1.2%.
At a press conference on November 21, MTI Permanent Secretary Yang Decong said, "Our trade-related sectors have performed strongly, which is attributed to the resilience of our global trading partners."
Trade-related sectors, such as manufacturing, wholesale trade, and transportation and warehousing, have exceeded expectations, supporting economic growth.
In the third quarter, the GDP growth rate of the electronics industry declined, but the growth in demand related to artificial intelligence has driven expansion in sectors such as semiconductors, servers, and related components.
The manufacturing sector grew by 8.9%, mainly driven by high-value advanced manufacturing, especially the strong performance of the electronics industry.
When the MTI revised the GDP growth forecast in August, it was based on the strong performance of trade-related sectors, which exceeded global expectations, thanks to the recovery of the regional economy.
However, data from October showed that overall exports fell by 2.5% after growing by 2.2% in the previous month.
The MTI stated that the strong momentum of economic growth may continue for some time, but it is expected that the growth level in 2025 will be higher than the 1.5% to 2.5% forecasted in August.
At the same time, the strengthening of the Singapore dollar is expected to suppress economic growth in 2025, as it will affect exports.
Additionally, the escalation of US tariffs could also lead to increased trade tensions, which would put pressure on business confidence and spending by households.
The MTI believes that Singapore's economic growth will slow down to 1% to 2% in 2026. This prediction is not without basis, as global economic uncertainties may persist, and the impact of US tariff policies will gradually become apparent.
Jubilee Has, senior economist at United Overseas Bank Group, said that Singapore's "measuring flexibility" - the ability of the economy to recover quickly from shocks - will enable its 2025 growth forecast to approach 4%, while 2026 may see a moderate slowdown from around 4% in 2025 to 1% to 2%.
Original: www.toutiao.com/article/1849500752743689/
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