FX.co ★ Singapore Q1 GDP Growth Tops Estimates

Singapore's economy experienced a 3.9% growth in the first quarter of 2025 compared to the same period last year. While this marks a slowdown from the 5% growth recorded in the previous quarter, it exceeded market forecasts of a 3.6% rise, according to final data. The expansion was primarily fueled by robust performance in the wholesale trade, manufacturing, and finance and insurance sectors. Analysts pointed out that activities in the manufacturing and wholesale trade sectors were likely accelerated due to preemptive actions in anticipation of potential US tariff increases. On the other hand, the accommodation and food & beverage services sectors experienced a decline, particularly impacted by the underperformance of the high-end hotel segments. When examining the data on a quarterly basis, GDP decreased by 0.6%, contrasting with the 0.5% growth seen in Q4 2024, which underscores short-term challenges despite the annual growth exceeding expectations. Moving forward, the government has revised its full-year growth projection for 2025 to a range of 0% to 2%, down from an earlier estimate of 1% to 3%.