Singapore's GDP picks up with 4.3% growth in Q2 2025, up from previous quarter

GDP growth averaged 4.2% year-on-year in the first half of 2025. However, the outlook for the second half remains clouded by significant uncertainty and downside risks amid lingering questions over US tariff policies.

Singapore's economy is expected to grow by 4.3% on a year-on-year basis in Q2 2025, according to the Ministry of Trade and Industry, extending the 4.1% growth in the previous quarter. 

On a quarter-on-quarter seasonally adjusted basis, the gross domestic product (GDP) expanded by 1.4%, marking a turnaround from the 0.5% in the first quarter of this year. 

As a whole, GDP growth averaged 4.2% year-on-year for the first half of 2025. Looking ahead, there remain significant uncertainty and downside risks in the global economy in the second half of 2025 given the lack of clarity over the tariff policies of the US.

Sectoral performance in Q2 2025 

Manufacturing

The manufacturing sector grew by 5.5% year-on-year in Q2 2025, up from 4.4% in the previous quarter. Growth was broad-based across most clusters, except for the chemicals and general manufacturing clusters. On a quarter-on-quarter seasonally adjusted basis, the sector saw a modest 0.1% expansion, rebounding from the 5.5% contraction in Q1.

Construction

The construction sector expanded by 4.9% year-on-year in Q2, slightly easing from 5.1% in the previous quarter. Growth was supported by stronger public sector construction output. On a quarter-on-quarter seasonally adjusted basis, the sector grew by 4.4%, reversing a 1.8% decline in Q1.

Wholesale & retail trade and transportation & storage

Together, these sectors grew by 4.8% year-on-year in Q2, extending the 4.6% growth from the previous quarter. All sectors within this group expanded.

• Growth in transportation & storage was mainly driven by the water transport segment.
• The wholesale trade sector saw gains led by the machinery, equipment & supplies segment, partly boosted by front-loading activities ahead of the expiry of the 90-day pause in US reciprocal tariffs.
• The retail trade sector benefited from higher sales volumes in both motor vehicle and non-motor vehicle segments.

On a quarter-on-quarter seasonally adjusted basis, the group grew by 2.7%, up from 0.8% in Q1.

Information & communications, finance & insurance, and professional services

This group expanded by 3.8% year-on-year in Q2, slightly improving on the 3.7% growth in the prior quarter. All sectors in this group saw growth:

• The information & communications sector was supported by continued demand for IT and digital solutions.
• The professional services sector grew on the back of the head offices & business representative offices segment.
• Growth in finance & insurance was largely driven by banking activities and auxiliary financial services.

Quarter-on-quarter, the group rebounded with 1.3% growth, following a 4.4% contraction in Q1.

Other services sectors (accommodation & food services, real estate, administrative & support services, other services)

These sectors recorded a 3.4% year-on-year growth in Q2, up from 2.3% in the previous quarter. All sectors within this group expanded, with the accommodation sector notably supported by higher international visitor arrivals.

On a quarter-on-quarter seasonally adjusted basis, this group grew by 0.7%, a slight moderation from 1.2% in Q1.

READ MORE: Singapore’s economy expands by 4.4% in 2024, maintaining GDP growth forecast for 2025 at "1% to 3%"
Infographics / MTI