Banks raise Singapore's GDP forecast amidst strong data

The city-state’s GDP grew 2.9% year on year in the third quarter of 2025, exceeding the 2.0% forecast.

Major investment banks have raised their 2025 full-year forecast for Singapore's gross domestic product growth, following stronger-than-expected economic data.

According to the Ministry of Trade and Industry, the city-state’s GDP grew 2.9% year on year in the third quarter of 2025, slower than the previous quarter's 4.3%, yet exceeding the 2.0% consensus forecast.

In line with this, RHB upgraded its 2025 GDP forecast from 2.0% to 3.0%, whilst Maybank lifted its 2025 forecast from 3.2% to 3.5% and maintained its 2026 growth forecast at 2.5%.

Despite this, analysts anticipate moderating growth momentum in the final quarter of 2025.

The economic slowdown was broad-based in Q3, with key sectors seeing weakness including the manufacturing and construction sector stalling growth at 0.0% YoY.

The sector’s outlook remains soft, evidenced by the 4.8% contraction in electronics output and a 37.3% plunge in biomedical output. Analysts expect this moderation to continue as external demand uncertainties weigh.

The construction sector, however, is expected to remain resilient, backed by $33.8b in contract awards through August, putting the industry on track to meet full-year projections.

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