Singapore slips to A3 risk rating amidst deepening tariff threats

Singapore’s macroeconomic outlook has become less favourable.

Singapore’s country risk rating has been downgraded from A2 to A3, according to the latest July 2025 Risk Review from Coface.

Coface noted that Singapore’s macroeconomic outlook has become less favourable, with trade in goods and services accounting for more than three times the size of its GDP. The downgrade highlighted how exposed Singapore is to global economic fluctuations, particularly as the US, one of its key export partners, imposes sweeping tariff changes.

In response to these developments, the Singaporean government revised its 2025 GDP growth forecast down to between 0% and 2%, a marked slowdown from earlier projections. In the first quarter of 2025, key export markets were already showing signs of economic softening.

The report also noted that the US accounts for 8.9% of Singapore’s exports, underscoring the significance of trade policy changes for the city-state’s near-term economic trajectory.