Singapore economy slows to 2.9pc in Q3, dragged by weaker manufacturing

SINGAPORE, Oct 14 — The Singapore economy grew by 2.9 per cent on a year-on-year (y-o-y) in the third quarter of 2025 (3Q 2025), moderating from the 4.5 per cent growth recorded in the previous quarter.

According to the republic’s Ministry of Trade and Industry (MTI) advance estimates released today, on a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 1.3 per cent, slightly slower than the 1.5 per cent growth in the second quarter.

The advance gross domestic product (GDP) estimates for 3Q 2025 were compiled largely from data in the first two months of the quarter and are subject to revision when more comprehensive data become available.

By sector, manufacturing output was flat y-o-y in 3Q 2025, easing from the five per cent growth in the previous quarter

“Growth was weighed down by output declines in the biomedical manufacturing and general  manufacturing clusters, even as output in the other manufacturing clusters expanded,” MTI said.

The construction sector grew by 3.1 per cent y-o-y basis in 3Q 2025, moderating from the 6.2 per cent growth in the preceding quarter, supported by increases in both public and private sector construction output.

Among the services sectors, the wholesale and retail trade and transportation and storage sectors collectively expanded by 2.5 per cent y-o-y basis in 3Q 2025, easing from the 4.9 per cent growth in the previous quarter. All sectors within this group recorded growth during the quarter.

The information and communications, finance and insurance, and professional services sectors grew by 4.4 per cent y-o-y basis in 3Q 2025, extending the 4.3 per cent expansion in the previous quarter. All sectors within this group also expanded.

Meanwhile, the accommodation and food services, real estate, administrative and support services, and other services sectors expanded by 4.1 per cent y-o-y basis in 3Q 2025, following the 4.0 per cent increase in the preceding quarter.

“All sectors within the group, except for the food and beverage services sector, grew during the quarter. In particular, the accommodation sector expanded on the back of higher international visitor arrivals,” it added.

MTI will release the preliminary GDP estimates for 3Q 2025, including detailed performance by sectors, sources of growth, inflation, employment and productivity, in the Economic Survey of Singapore in November. — Bernama