Investing Updates: Singapore economy beats forecasts with 2.9% growth in third quarter despite US tariffs

Source:

https://www.straitstimes.com/business/singapore-economy-grows-2-9-in-third-quarter-mti-advance-estimate

ChatGPT:

Singapore’s economy expanded 2.9% year on year in Q3 2025, outperforming economists’ forecasts of 2%, despite global trade tensions and new US tariffs. The Ministry of Trade and Industry (MTI) said the stronger-than-expected performance reflected resilience in construction, services, and domestic consumption, even as manufacturing growth stalled. Quarter-on-quarter, manufacturing rose 6.1%, rebounding from a 0.7% contraction, while construction grew 3.1%, supported by both public and private projects. Services industries expanded 3.5%, led by finance, ICT, and professional services.

Analysts attributed the growth to fiscal stimulus, falling interest rates, and AI-driven demand in tech exports, which offset external headwinds. Maybank and Goldman Sachs raised their 2025 GDP forecasts to 3.5% and 3.6%respectively, while RHB lifted its estimate to 3%, citing resilient domestic demand. However, economists warned that growth momentum may ease in Q4 as front-loading of US-bound exports fades and uncertainty persists over possible tariffs on semiconductors and pharmaceuticals, which make up nearly a third of Singapore’s US exports.

The Monetary Authority of Singapore (MAS) noted that the economy grew 3.9% in the first three quarters of 2025, but expects moderation ahead as trade activity normalises. It added that AI-related investments, particularly in memory chips and servers, should support manufacturing for the rest of the year. Retail spending remains stable, though benefits from SG60 vouchers are set to taper. Overall, while Singapore’s near-term outlook remains cautiously positive, external risks and tariff uncertainties could weigh on exports and investments heading into 2026.

Opinion:

Nice figures.

Hopefully, the job economy gets better.