Singapore GDP Grows 1.4% in Q2, Accelerating from 1.1% in Previous Quarter

Singapore’s Gross Domestic Product (GDP) expanded by 1.4% quarter-on-quarter in the second quarter of 2025, up from a revised 1.1% growth in the first quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on July 14, 2025.

What Drove the Q2 Acceleration?

The faster quarterly growth was largely supported by the manufacturing sector, which rebounded from a contraction in the previous quarter, and continued expansion in the services sector. The construction sector also posted modest gains, reflecting ongoing public infrastructure projects.

On a year-on-year basis, the economy grew by 2.9% in Q2, up from 2.7% in Q1, beating market expectations. The advance estimates are compiled largely from data in the first two months of the quarter and are subject to revision when more complete data become available.

Implications for the Rest of 2025

The latest figures suggest that Singapore’s economy is on a steady recovery path despite global uncertainties, including persistent inflation in major advanced economies and geopolitical tensions. The Monetary Authority of Singapore (MAS) and MTI have maintained their GDP growth forecast for 2025 at 1.0% to 3.0%, with the current performance tracking within the upper half of that range.

Analysts note that the Q2 momentum may be sustained by robust demand for electronics and precision engineering, as well as a continued recovery in tourism and aviation-related services.

What This Means for Businesses and Consumers

For businesses, the improved GDP figures signal a more favorable operating environment, with potential increases in orders and investment. For consumers, the growth could translate into a more resilient job market, although wage pressures may remain moderate. The government has indicated that it will continue to monitor external risks, including potential supply chain disruptions and volatility in global financial markets.

Conclusion

Singapore’s Q2 GDP growth of 1.4% QoQ marks a positive development, reflecting resilience in key sectors. While the outlook remains cautiously optimistic, the full-year performance will depend on global demand and the ability to navigate external headwinds. The final GDP figures for Q2 are scheduled for release in August, providing a more comprehensive assessment.

FAQs

Q1: What is the latest Singapore GDP growth rate?
As of the second quarter of 2025, Singapore’s GDP grew by 1.4% quarter-on-quarter, up from 1.1% in the first quarter. On a year-on-year basis, growth was 2.9%.

Q2: Why is the QoQ GDP growth important?
Quarter-on-quarter growth measures the short-term momentum of the economy, indicating whether it is expanding or contracting relative to the previous three months. A positive QoQ figure suggests the economy is growing.

Q3: When will the final GDP figures be released?
The final GDP figures for Q2 2025 are scheduled for release in August 2025, following the advance estimates. The final numbers may differ from the advance estimates due to more complete data.