Singapore’s economy expanded by 2.9 percent in the third quarter, a slowdown from the previous quarter, according to preliminary official data released on Tuesday. The deceleration is linked to the impact of U.S. tariffs on key manufacturing sectors. As a heavily trade‑reliant economy, Singapore is vulnerable to global trade disruptions, even though the baseline tariff imposed by U.S. President Donald Trump is relatively low at 10 percent.
The country’s gross domestic product (GDP) growth for the July‑September period, while beating economists’ forecasts, was the slowest this year. It followed a 4.1 percent increase in the first quarter and a 4.5 percent rise in the second quarter, according to trade‑ministry data. The export‑driven manufacturing sector, a critical component of Singapore’s economy, was flat year‑on‑year in the third quarter, compared with a 5.0 percent growth in the second quarter. The ministry attributed the sluggish performance to output declines in the biomedical manufacturing and general manufacturing clusters.
These preliminary GDP figures, based on the economic performance of the first two months of the quarter, are subject to revision. They reflect softer shipments to Singapore’s key export markets, as data released last month showed. Non‑oil domestic exports fell by 11.3 percent in August, accelerating from a 4.7 percent decline in July. Exports to the United States and China, crucial markets for Singapore, dropped by nearly 29 percent and 21.5 percent, respectively, in August, extending the declines observed in July and highlighting the challenges posed by global trade uncertainties.
In August, Singapore’s trade ministry revised its 2025 growth forecast to a range of 1.5‑2.5 percent, up from an earlier range of 0‑2.0 percent. However, the ministry cautioned that global uncertainties, including trade tensions, continue to pose risks to the economy. As Singapore navigates these challenges, the impact of U.S. tariffs and ongoing trade dynamics will be closely watched for their implications on the country’s economic trajectory.
Comments are closed for this story.