Singapore Raises Full-Year GDP Growth Projection to 1.5%-2.5%

Singapore upgraded its 2025 GDP growth projection to 1.5%-2.5%, a significant improvement from the previous 0%-2%. The country's export-driven manufacturing sector expanded 5.2% YoY in Q2, contributing to the better-than-expected performance. The upgrade reflects Singapore's resilience in a challenging global economy.

Singapore's economy demonstrated remarkable resilience in the second quarter of 2025, with GDP growing by 4.4% year-over-year, slightly higher than the previously estimated 4.3% [1]. This growth was driven by a robust performance in the export-driven manufacturing sector, which expanded by 5.2% year-over-year [2].

The upgrade in the 2025 GDP growth projection, from 0% to 2% to 1.5% to 2.5%, reflects Singapore's ability to adapt to a challenging global economic environment [1]. The Ministry of Trade and Industry (MTI) attributed this improvement to a better-than-expected first-half performance [1]. Despite the positive outlook, the MTI acknowledged that the economic outlook for the rest of the year remains clouded by uncertainty, with risks tilted to the downside [1].

Enterprise Singapore also maintained its forecast for non-oil exports at a growth rate of 1% to 3% for 2025, expecting some weakness in the second half after a stronger-than-expected start to the year [1].

Singapore's economic resilience can be attributed to its proven track record of adapting to changing global economic environments, as highlighted by analysts from Morgan Stanley [4]. The country's initiatives to reinforce its hub industries and adopt emerging technologies such as artificial intelligence (AI) are expected to support its long-term growth goals [4].

References:
[1] https://www.reuters.com/world/asia-pacific/singapore-says-gdp-up-44-yy-q2-upgrades-2025-forecast-2025-08-12/
[2] https://asia.nikkei.com/economy/singapore-lifts-full-year-gdp-growth-projection-to-1.5-2.5
[4] https://www.straitstimes.com/business/singapore-can-deliver-and-thrive-in-a-fragmented-global-economy-morgan-stanley-analysts