Singapore’s economy grows faster than expected

Singapore’s Pasir Panjang, one of the world-leading ports in terms of automation technology (Photo: VNA)

Data released by the Ministry of Trade and Industry (MTI) on October 14 showed that the economy expanded by 2.9% year-on-year, slower than the 4.5% growth in the previous quarter but higher than the 2% forecast by economists in a Bloomberg poll.

On a seasonally adjusted quarter-on-quarter basis, the economy grew 1.3%, slightly below the 1.5% recorded in the second quarter.

During the third quarter, manufacturing output was flat year-on-year, easing from a 5% expansion in the previous quarter, MTI data showed. The slowdown was mainly due to lower output in the biomedical and general manufacturing clusters, though other sectors continued to grow. On a quarterly basis, manufacturing rose 6.1%, a turnaround from the 0.7 per cent contraction in the second quarter.

The accommodation and food services, real estate, administrative and support services, and other service industries grew 4.1%, following a 4% expansion in the preceding quarter.

In a separate statement, the Monetary Authority of Singapore (MAS) said the economy expanded by 3.9% in the first three quarters of 2025, faster than during the same period last year.

However, the country's central bank noted that GDP growth is expected to moderate in the coming quarters as activity in trade-related sectors returns to normal levels.

According to MAS, continued global investment in artificial intelligence will partly support the domestic manufacturing sector, while growth in construction and financial services will be driven by infrastructure investment and favourable financial conditions.

Updated official growth forecasts for 2025 and 2026 will be announced by MTI in November./.

VNA

Source: https://en.vietnamplus.vn/singapores-economy-grows-faster-than-expected-post330415.vnp