Singapore Flags Recession Risk This Year

Singapore may slip into a technical recession this year, a government official warned after final GDP data confirmed the economy contracted in Q1 2025—even before U.S.

tariffs took effect.

The trade-reliant economy grew 3.9% yoy but shrank 0.6% qoq.

Permanent Secretary Beh Swan Gin said a technical recession—two straight quarters of contraction—was possible, though “that doesn't necessarily equate to full-blown economic recession.” The Ministry of Trade kept unchanged its 2025 growth forecast at 0.0% to 2.0%, citing a still-challenging global environment despite modest improvements in external demand.

Despite having a free-trade agreement and trade deficit with the U.S., Singapore faces a 10% baseline tariff imposed by Washington.

Several companies in the city have reportedly delayed expansion plans or redirected funds to cope with rising costs.