Singapore Dowgrad GDP Growth Forecast to 0-2 PC | Business

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Singapore has reduced its 2025 gross domestic product growth by 0–2% due to the anticipated impact of the US tariff on global trade. Singapore’s monetary authority has reduced monetary policy in response to economic concerns arising from the US-China trade war. Business war is expected to negatively affect global trade, economic growth and professional spirit.

Singapore: Singapore has reduced the forecast for the development of its GDP (GDP) from 2025 to 0-2 percent, the Ministry of Trade and Industry (MTI) on Monday (April 14) cited the impact of US President Donald Trump’s tariff on global trade. Singapore’s Monetary Authority (MAS), D Facto Central Bank has also loose monetary policy in a row for the second time as the trade war between the US and China increases economic fear and reduces the expectations of main inflation for the year.
MTI reported that in February, Singapore’s forecast for GDP growth for the year was 1-3 percent. This took into account the expected relaxation in the overall growth of the major trading partners of Singapore including the US and China.
Since then, MTI said, the US has imposed a baseline tariff of 10 percent on all countries and a targeted high mutual tariff in countries running large trade surplus with the US, “MTI said, Tariff and the ongoing trade war between the US and China is expected to be significant on the global trade and global economic growth.”
The development approach of economies in the region will be “negatively affected” by partially declining external demand due to widespread impact on global trade and development.
“Trade and consumer sentiments will also be moistened, which will reduce domestic consumption and investment in many economies,” MTI said.
According to advance estimates from the ministry, the Singapore economy increased by 3.8 percent in the first quarter of 2025, slowing down by 5 percent in the previous quarter.
On seasonally adjusted basis in a fourth-by-term, the economy contracted in some service sectors such as the sequential decline in manufacturing, compared to 0.8 percent compared to a 0.8 percent increase in the fourth quarter of 2024, and in some service sectors such as finance and insurance.
Trump has since hit the poses button to impose high fees on his business partners – except China – for 90 days, but Singapore, which currently imposes zero tariffs on American imports, is still subject to 10 percent rate.
While MTI mentioned a temporary 90-day break, the tariff war between the US and China has also intensified, China has increased duties up by 125 percent on American goods.
“America’s development approach has deteriorated as consumption is likely to weaken in rising import costs. The ministry said that China’s development approach has also been softened as an increase in its exports is expected to stop between the trade war with the US.