FX.co ★ Singapore Warns of Slower Growth Amid Tariff Uncertainty

Singapore's economic expansion is poised to decelerate in the latter half of 2025, despite recording a stronger-than-anticipated 4.3% growth rate in Q2. This growth was bolstered by exports being expedited ahead of impending U.S. tariffs. Chia Der Jiun, the head of the Monetary Authority of Singapore, indicated on Tuesday that this forecast is consistent with the anticipated slowdown in global activity and diminished external demand. "Several factors could influence the situation, including the scope and impact of tariffs, the success and longevity of trade agreements, and the potential for renewed trade conflicts," Chia stated. In response to these uncertainties, Singapore had already revised its projected GDP growth for the year to a range of 0–2%, down from a previous forecast of 1–3%. While U.S. President Donald Trump has recently declared new tariffs ranging from 20% to 50% on more than 20 nations starting August 1, Singapore has not yet been directly affected, adhering instead to a 10% baseline tariff imposed in April.