Impact of Trump tariffs could push Singapore into technical recession, after Q1 growth disappoints: economists

[SINGAPORE] Private-sector economists warned that Singapore could slip into a technical recession this year, as the escalating trade war between the United States and China is expected to weigh heavily on global growth.

This comes after Singapore downgraded its official growth forecast to “0 to 2 per cent”, from a range of 1 to 3 per cent, as its external demand outlook has “weakened significantly” due to US President Donald Trump’s tariff regime. The lowered forecast also prompted some economists to cut their full-year gross domestic product estimates for 2025.

“Although there has been a temporary 90-day pause in the implementation of the higher reciprocal tariffs, except for China, the tariff war between the US and China has intensified, with an escalating cycle of tit-for-tat tariffs being imposed by both sides,” said the Ministry of Trade and Industry (MTI) on Monday (Apr 14).