RHB Bank has maintained its forecast for Singapore’s gross domestic product (GDP) growth at 3.0% for 2025, according to its latest Global Economics and Market Strategy Report.
This projection is at the upper limit of the official range of 1.0% to 3.0%, as stated by Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank. The report highlights potential external risks, particularly uncertainties surrounding US trade policies, which could impact this growth outlook.
The report also notes that Singapore’s economic resilience and controlled inflation pressures are likely to lead the Monetary Authority of Singapore (MAS) to maintain its current policy parameters in the upcoming quarters. This stability in policy is seen as crucial in navigating the external uncertainties that may arise.
In terms of recent performance, Singapore’s GDP expanded by 5.0% year-on-year (YoY) in the latest quarter, aligning with RHB’s revised forecast and Bloomberg’s consensus. This growth rate is a continuation of the positive trend seen in 2024, where the economy grew by 4.4% YoY, a significant increase from the 1.8% YoY expansion recorded in 2023.
The report underscores the importance of monitoring external factors whilst acknowledging the robust domestic economic conditions. As Singapore navigates these challenges, the forecasted growth rate reflects confidence in the country’s economic strategies and resilience. Looking ahead, the focus will remain on balancing growth with potential external pressures, ensuring sustainable economic progress.
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