Singapore's 2025 growth forecast remains at 2.6%

Economists have kept Singapore's growth forecast for 2025 at 2.6%. This prediction is lower than last year's growth of 4.4%. The Ministry of Trade and Industry expects the economy to grow between 1% and 3% this year. Geopolitical tensions, such as higher tariffs, are viewed as significant risks. Economists also mentioned concerns about weaker growth in China and rising inflation. On a more positive note, stronger growth in China and a sustained tech sector increase could improve Singapore's economic outlook. These insights were shared in the Monetary Authority of Singapore's (MAS) recent survey, which involved 20 economists and analysts. The survey indicated a likely growth range of 2.5% to 2.9% for this year, consistent with the previous survey from December 2024. Core inflation is expected to be around 1.5% for 2025, in line with MAS's forecast of 1% to 2%. About 16% of survey respondents believe Singapore may lower its Singdollar nominal effective exchange rate policy in April, while 29% expect this change in July. The MAS primarily uses the exchange rate as a policy tool due to Singapore's reliance on trade. Looking ahead to 2026, GDP growth is predicted at 2.3%, with core inflation expected to increase to 1.7%.