Singapore’s economy experienced robust growth in the second quarter of 2025,expanding by 4.3% year-on-year, a slight increase from the 4.1% growth in the first quarter. On a quarter-on-quarter seasonally-adjusted basis, the economy saw a important turnaround, growing by 1.4% after a 0.5% contraction in the previous quarter. For the first half of the year, GDP growth averaged 4.2% year-on-year.
The manufacturing sector showed resilience, growing by 5.5% in the second quarter, up from 4.4% in the first quarter, despite ongoing tariff concerns.This growth was broad-based across most clusters, with the exception of chemicals and general manufacturing. However, on a quarter-on-quarter seasonally-adjusted basis, the manufacturing sector grew by a modest 0.1%, a reversal from a 5.5% contraction in the first quarter.
The construction sector also performed well, expanding by 4.9% year-on-year, a slight moderation from 5.1% in the preceding quarter. this growth was primarily driven by increased public sector construction output. Quarter-on-quarter, the sector posted a strong 4.4% growth, recovering from a 1.8% contraction in the previous quarter.
Services sectors also contributed positively. The wholesale & retail trade and transportation & storage sectors collectively grew by 4.8%,building on the 4.6% growth in the first quarter, with all sub-sectors within this group expanding. The information & communications, finance & insurance, and professional services sectors saw a combined growth of 3.8%, following a 3.7% expansion in the previous quarter. Growth in the finance & insurance sector was particularly boosted by banking activities and related auxiliary services.
Looking ahead, the Ministry of Trade and Industry (MTI) noted significant uncertainty and downside risks in the global economy for the second half of 2025, largely due to the unresolved tariff policies of the US. The full economic survey, including detailed sector performance, sources of growth, inflation, employment, and productivity, is scheduled for release in August 2025.
