Singapore’s economy is set to experience moderate growth in 2025, with RHB Bank forecasting a 3% increase in both gross domestic product (GDP) and industrial production (IP). This projection comes from the latest Global Economics and Market Strategy Report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank.
The report highlights an upgrade in Singapore’s fourth quarter (Q4) 2024 and full-year GDP growth estimates, surpassing the Ministry of Trade and Industry’s (MTI) advance estimates for Q4 2024. December’s industrial production figures showed a significant year-on-year increase of 10.6%, exceeding market expectations of 6.4% and RHB’s own estimate of 3.3%. This growth, however, marks a slight moderation from November’s revised 10.8% year-on-year rise.
Gan’s analysis suggests that the robust performance in December’s industrial production is a positive indicator of the country’s economic trajectory in 2025. The report underscores the resilience of Singapore’s manufacturing sector, which continues to drive economic growth despite global uncertainties.
Looking ahead, RHB Bank’s forecast reflects cautious optimism, balancing the potential for growth with the challenges posed by the global economic environment. The bank’s projections are closely watched by investors and policymakers, as they provide insights into Singapore’s economic health and future prospects.
