Singapore GDP up 2.9% in Q3, surpassing forecasts

[SINGAPORE] The Republic’s economy expanded 2.9 per cent year on year (yoy) in the third quarter of 2025, slowing from the previous quarter’s 4.5 per cent but still exceeding analyst expectations, advance estimates from the Ministry of Trade and Industry showed on Tuesday (Oct 14).

The Q3 expansion surpassed the median forecast of 2 per cent growth projected by private-sector economists polled by Bloomberg.

On a seasonally adjusted quarterly basis, gross domestic product rose 1.3 per cent, edging down slightly from the 1.5 per cent advance recorded in the second quarter.

The moderation was driven primarily by a sharp deceleration in the goods-producing industries, which expanded just 0.6 per cent yoy, down from the 4.8 per cent growth in Q2.

Manufacturing output remained unchanged yoy in Q3, a marked slowdown from the 5 per cent expansion in the preceding quarter.

The sector’s performance was weighed down by output declines in the biomedical manufacturing and general manufacturing clusters, even as other manufacturing segments posted gains.

Sequentially, however, the manufacturing sector rebounded sharply, growing 6.1 per cent, reversing the 0.7 per cent contraction seen in Q2.

The construction sector also lost momentum, advancing 3.1 per cent year on year compared with 6.2 per cent growth in the previous quarter. Both public and private-sector construction activity supported the expansion during the period.

Quarter on quarter, construction output shrank by 1.2 per cent, a reversal from the 6.5 per cent surge in Q2.

SEE ALSO

Singapore should aim to grow faster than eventual 2-3% long-term rate: Gan Kim Yong

Economists expect MAS to hold steady in October amid tariff uncertainty, with final monetary policy easing in 2026 instead

Trump’s pharma tariffs put Singapore at ‘greatest risk’ among major exporters if no exemptions granted: economists

MOF to maintain ‘sound finances’ through judicious spending, rigorous reviews

More

On the whole, the services-producing industries proved more resilient, expanding 3.5 per cent yoy, though this represented a deceleration from the 4.5 per cent growth registered in Q2.

Within services, the wholesale and retail trade, and transportation and storage sectors collectively grew 2.5 per cent yoy, easing from 4.9 per cent previously.

Growth in wholesale trade was driven by the machinery, equipment and supplies segment, while the transportation and storage sector benefited from strength in water and air transport.

The information and communications, finance and insurance, and professional services cluster maintained steady momentum, expanding 4.4 per cent yoy, up marginally from 4.3 per cent in Q2. All constituent sectors posted gains, with IT and information services, banking, and head offices driving the advance.

The group of sectors comprising accommodation and food services, real estate, administrative and support services, as well as other services grew 4.1 per cent yoy, up slightly from the 4 per cent expansion in Q2.

The accommodation sector benefited from rising international visitor arrivals, though food and beverage services contracted during the quarter.

On a sequential basis, the services-producing industries edged up 0.2 per cent, slowing down from the growth of 1.7 per cent in Q2.