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Singapore: growth hampered by US customs tariffs

Although it beat forecasts at +2.9%, the city-state’s gross domestic product growth during the July-September period was the weakest of the year so far.

Singapore’s economy grew 2.9% in the third quarter of 2025, less than the previous three months, according to preliminary official data released on Tuesday, as US tariffs weighed on key manufacturing sectors.

Southeast Asia’s second-largest economy is often seen as a barometer of the state of the global economy because it relies heavily on international trade.

He is therefore vulnerable to the global slowdown caused by customs surcharges, even if he himself is only subject to 10% customs duties imposed by US President Donald Trump.

Although it beat economists’ forecasts, the city-state’s gross domestic product (GDP) growth for the July-September 2025 period was the weakest of the year so far, according to the latest data from Singapore’s Ministry of Commerce. GDP increased by 4.1% in the first quarter and 4.5% in the second.

Darkened perspective

The manufacturing sector, driven by exports, remained stable year-on-year in the third quarter, after growth of 5% in the second quarter, according to these figures.

“Growth was slowed by the decline in production in the biomedical and general industrial sectors,” the ministry said.

These preliminary GDP figures – subject to revision – reflect data released last month, which showed a slowdown in exports to Singapore’s main markets such as China and the United States.

In August, Singapore raised its growth forecasts for the whole of 2025, from 1.5% to 2.5% (up from 0%-2% initially), while warning of prospects clouded by uncertainty in global trade.

Author: OC with AFP
Source: BFM TV

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