RHB Bank’s latest Global Economics and Market Strategy Report, led by Acting Group Chief Economist Barnabas Gan, projects a cautiously optimistic outlook for Singapore’s manufacturing sector in 2025. The report maintains a full-year industrial production (IP) forecast of 3% and a gross domestic product (GDP) growth rate of 3%, supported by a robust global and domestic economic landscape. However, uncertainties surrounding US trade policies pose potential risks to this outlook.
In January, Singapore’s manufacturing sector showed promising growth, with a year-on-year (YoY) increase of 9.1%, up from December’s 5.2% YoY. This performance closely aligns with RHB’s estimate of 9% YoY and matches the Bloomberg consensus estimate of 9.1% YoY.
Gan emphasised the importance of monitoring external factors, particularly US trade policies, which could impact Singapore’s manufacturing and trade activities in the coming year. Despite these concerns, the overall sentiment remains positive, with expectations of continued growth driven by both global and domestic economic conditions.
The report highlights the significance of Singapore’s manufacturing sector as a key driver of economic growth, underscoring the need for vigilance in navigating potential challenges. As the year progresses, stakeholders will be closely watching developments in international trade policies and their implications for Singapore’s economy.
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