S'pore's economy grew 4.3% in Q2 2025: MTI advance estimates

Singapore's economy grew by 4.3 per cent on a year-on-year basis in the second quarter of 2025, based on advance estimates from the Ministry of Trade and Industry (MTI) on Jul. 14.

This is an increase compared to the first quarter of the year, which saw a 4.1 per cent growth.

MTI said that there remain significant uncertainty and downside risks in the global economy in the second half of 2025, given the lack of clarity over the tariff policies of the U.S.

Growth across sectors

There was faster growth in the manufacturing sector, which grew by 5.5 per cent year-on-year in the second quarter of 2025 and 4.4 per cent expansion in the first quarter.

Growth was driven by output expansions across all clusters, except for the chemicals and general manufacturing clusters.

The sector expanded by 0.1 per cent on a seasonally adjusted quarter-on-quarter basis, rebounding from the 5.5 per cent decline recorded in the first quarter.

For the construction sector, growth in the second quarter eased to 4.9 per cent, compared to the 5.1 per cent growth in the preceding quarter.

The growth was supported by an increase in public sector construction output.

On a quarter-on-quarter seasonally-adjusted basis, the sector posted growth of 4.4 per cent, reversing the 1.8 per cent contraction in the previous quarter.

The wholesale and retail trade sector and the transportation and storage sector collectively grew by 4.8 per cent year-on-year in the second quarter, an increase from the 4.6 per cent growth in the previous quarter.

Growth in the transport and storage sector was mainly driven by the water transport segment, while the wholesale trade sector was led by the machinery, equipment, and supplies segment.

MTI said these segments were, in turn, partly boosted by front-loading activities in the region ahead of the expiration of the 90-day pause in the U.S.’s reciprocal tariffs.

For the retail trade sector, MTI said it expanded on account of higher sales volumes in both the motor vehicle and non-motor vehicle segments.

On a quarter-on-quarter seasonally-adjusted basis, growth in the wholesale and retail trade sector as well as the transportation and storage sector increased up to 2.7 per cent, compared to 0.8 per cent in the first quarter.

The combined sectors of information and communications, finance and insurance, and professional services grew 3.8 per cent year-on-year in Q2, up slightly from 3.7 per cent in Q1.

For the finance and insurance sector, growth was largely driven by banking activities, as well as activities auxiliary to financial activities.

On a quarter-on-quarter seasonally-adjusted basis, this group of sectors grew by 1.3 per cent, a turnaround from the 4.4 per cent contraction in the first quarter.

Growth for the remaining group of service sectors, which include accommodation and food services, real estate, administrative and support services, and other service sectors, came in at 3.4 per cent year-on-year in the second quarter, higher than the 2.3 per cent growth in the preceding quarter.

Particularly, growth in the accommodation sector was supported by the year-on-year increase in international visitor arrivals.

On a quarter-on-quarter seasonally-adjusted basis, the sectors in the group collectively expanded by 0.7 per cent, moderating from the 1.2 per cent growth in the first quarter.

Overall economic growth

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 1.4 per cent, a turnaround from the 0.5 per cent contraction in the first quarter of 2025.

GDP growth averaged 4.2 per cent year-on-year for the first half of 2025.

The preliminary GDP estimates for the second quarter of 2025—which include performance by sectors, sources of growth, inflation, employment, and productivity—will be released in the Economic Survey of Singapore in August 2025.

Top image via Canva