Singapore upgrades full-year growth forecast after stronger-than-expected Q3 performance

SINGAPORE: Singapore’s economy turned in a stronger performance than expected in the last quarter, prompting the Ministry of Trade and Industry (MTI) to revise this year’s growth forecast upward to about 4%.

In figures released today, MTI reported that the economy expanded by 4.2% year-on-year in the last quarter, surpassing earlier projections. On a quarter-on-quarter basis, growth came in at 2.4%, also higher than anticipated.

These results lifted Singapore’s average economic growth for the first three quarters of the year to 4.3%.

MTI attributed the latest uptick largely to robust activity in the manufacturing, wholesale trade, and financial and insurance sectors. The manufacturing sector posted a 5% year-on-year increase, buoyed by electronics, transport engineering and biopharmaceutical output. The construction sector grew by 3.6%, while services recorded a 3.6% expansion.

The ministry noted that global economic conditions have held up better than initially feared. While earlier expectations pointed to a slowdown in the second half of the year, most of Singapore’s major trading partners delivered stronger-than-expected growth in the last quarter. MTI also observed that trade tensions have eased in recent months.

Against this backdrop, MTI raised its full-year growth forecast from the previous 1.5% to 2.5% range to approximately 4%.

Looking ahead, however, the ministry cautioned that next year’s outlook remains uncertain. It expects the impact of the United States’ tariff policy to become more pronounced, while risks to the global economy persist. As a result, Singapore’s economic expansion is projected to moderate to between 1% and 3% next year.