Archive · 22 May 2025
Singapore's Economy Grows Despite Trade War Uncertainty
Singapore's economy grew faster than expected in the first three months of the year, but there are worries about a trade war.
Businesses did well because they were trying to get ahead of US tariffs.
Although the US delayed higher tariffs, a trade war could still hurt Singapore because it relies on trade with other countries.
The government thinks the economy might grow slower this year due to uncertainty.
People and businesses might spend less because they are waiting to see what happens.
Singapore's economy grew by 3.9% in the first quarter, exceeding the forecast of 3.8%.
Growth was weaker than the 5% expansion in the December quarter.
The economy contracted by 0.6% on a quarter-on-quarter basis.
Growth was driven by manufacturing and wholesale trade ahead of anticipated US tariff hikes.
The government warns of risks from a potential US-China trade war.
- Who
- Singapore's economy and trade ministry
- What
- Singapore's economy grew faster than expected in the first quarter, but faces risks from trade tensions.
- When
- The first quarter of the year, ending in March
- Where
- Singapore
- Why
- Driven by manufacturing and wholesale trade due to 'front-loading activities ahead of anticipated US tariff hikes'
Positive Economic Factors
Negative Economic Factors
Economic Growth vs Trade War Risks
Positive Economic Factors
Strong global demand and front-loading activities due to anticipated US tariff hikes contributed to Q1 growth.
Negative Economic Factors
Trade war risks could stifle the growth of the trade oriented economy.
- Q1 Growth (YoY)
- 3.9%
- Previous Quarter Growth
- 5%
- QoQ Contraction
- 0.6%
- Primary Affected Sectors
- Manufacturing and Wholesale Trade
- 2024 Growth Forecast
- 0-2%