Economic growth to slow in H2

Outward-oriented sectors weaken amidst softer global demand and US tariffs.

Singapore’s economic growth is expected to slow in the second half of 2025 as the threat of US reciprocal tariffs continues to loom, a report by RHB revealed.

RHB said that whilst Singapore’s economy remains resilient overall, key indicators are signalling a gradual loss of momentum. Externally-oriented sectors such as manufacturing and trade-related services are expected to see softer demand, and early signs of stress are emerging in labour-market proxies and bank loan-to-deposit ratios.

The bank noted that its newly launched Singapore Economic Heatmap shows a clear divergence: domestic-oriented activity and consumption have so far held up, but export-driven industries are weakening as front-loading effects fade. Although the slowdown does not yet point to a systemic recession, downside risks are “becoming increasingly pronounced,” it said.

Still, RHB retained its 2025 GDP growth forecast at 2%, saying upside potential remains if global demand stabilises more quickly or trade tensions ease further. In such a scenario, growth could reach 3%.