Singapore’s 2025 GDP to grow 3.0% with budget-led support: RHB

The 3% forecast is at the upper bound of the official estimate range of 1–3%.

RHB remains optimistic about Singapore’s GDP growth in 2025, maintaining its forecast at 3.0%, which sits at the upper bound of the official estimate range of 1–3%.

“Singapore's FY2025 Budget effectively addresses immediate cost challenges for households and businesses while setting the foundation for long-term economic growth,” RHB said.

While the FY2025 Budget may slightly increase inflation due to higher consumer demand, its impact is expected to be limited. RHB maintains its inflation forecasts at 2.3% for headline inflation and 1.8% for core inflation in 2025.

The projected fiscal surplus of $6.8b (0.9% of GDP) in 2025 is expected to strengthen Singapore’s reserves and boost international confidence in the Singapore Dollar.

RHB forecasts total expenditure at $123.8b, with government revenue exceeding expectations, primarily driven by corporate income tax receipts of $31.0b, now the largest contributor to total revenue.