Singapore marked the risk of technical recession due to global tariff tensions even after her economy began in 2025. years faster than the expected note.
The gross domestic product increased by 3.9% in three months to March from a year earlier, on Thursday Thursday Thursday Thursday was assessed in that final assessment on Thursday. The figure compares to a medium forecast of 3.6% in Bloomber’s research of economists, and advanced government assessment of 3.8%.
At a seasonally adjusted quarterly basis, GDP fell 0.6%, as opposed to a forecast of 1% contraction. Singapore dollar and the index of reference funds have changed a little after the report.
MTI maintained a recently reduced GDP growth for 2025. Year at 0% -2%, because American tariffs blurred the appearance for global trade. Prime Minister Lawrence Wong earlier warned that the recession could not be turned off.
“Technical recession in which you have two quarters of a sequentially negative growth of a quarter, ie the possibility,” Beh Svan Gin, a permanent secretary in the Ministry of Trade, told reporters. “This does not necessarily need to equalize with a complete exhaust economic recession” as seen in the annual GDP numbers.
The last time Singapore had a technical recession at the height of the covarine-bales pandemic 2020. years. Before that, the city-state had four straight quarter contractions from the June quarter of 2008. years.
Better than the expected results in the first quarter was driven by production and export activities because companies rushed to avoid the senings of the Greater US tariff.
That momentum is now on the “risk of biting,” Charu Chanan, the main investment strategist on the market, adding “fiscal buffers and proactive created policy in Singapore to offer a room to pad any external shock.”
The data show that the American Commercial War and the Chinese recovery shouted deeper into the region at the beginning of the year. Since then, two largest economies in the world called a truce, agreeing with a 90-day negotiated window under which they cut tariffs on goods to each other.
“Global economic prospects remain blurred with significant uncertainty, and the risks lean down,” he said.
Uncertainty could lead to a larger return in economic activity, he said that he added that the re-escalation of tariff shares could run full global trade war. He also warned that disorders on the global disinfulations and risk of recession could destabilize capital flows.
The growth of the “external sector” is expected against this background such as production, wholesale, transport and storage, slowing down this year. Sectors and insurance sectors will also probably be measured by weaker trade activities, while the look for the sector facing consumers is missing.
With trade accounting for about three times its GDP, Singapore remains acutely exposed to any sustainable slowing global trade. The Ministry of Commerce announced that this requires the forecast of its growth.
The monetary administration of Singapore will make a “comprehensive assessment” in launching a meeting on the policy of July Politics, the MAS Deputy General Manager Edward Robinson said on the same briefing.
“Policy attitude remains suitable from now,” he said.
The past month, Mas, mitigated his monetary policy settings for the second time.
Bloomberg Economy expects a growth of 0.9% this year, although see some risk of the 90-day US trademark. Another support factor for Singapore was the outcome of this month of choice.
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This story is originally presented Fortune.com
