Singapore is expected to run a budget deficit of 0.8% of its Gross Domestic Product (GDP) in the financial year 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report.
This marks a shift from an estimated surplus of 0.8% in FY2024. The report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, outlines the anticipated focus areas for the upcoming budget.
The FY2025 budget is projected to concentrate on four main priorities: job security and cost of living, strengthening Singapore’s economic relevance and resilience, enhancing the social compact, and promoting a green and sustainable Singapore. These areas are seen as crucial for maintaining the nation’s economic stability and addressing pressing social and environmental issues.
RHB Bank predicts that Singapore’s economy will grow by 3.0% in 2025, a slight easing from the 4.0% growth expected in 2024. The bank also maintains its forecast for the Consumer Price Index (CPI) at 2.3% for the current year. These projections highlight a cautious yet optimistic outlook for Singapore’s economic performance amidst global uncertainties.
The focus on sustainability and economic resilience reflects Singapore’s ongoing commitment to adapt to changing global dynamics whilst ensuring the well-being of its citizens. As the budget details unfold, these priorities are expected to guide policy decisions and resource allocation in the coming year.
