Singapore’s Q3 2025 GDP: A Mixed Pace of Growth
Singapore’s economy expanded by 2.9% in the third quarter of 2025, according to advance estimates from the Ministry of Trade and Industry (MTI) released on Oct 14. This is a step down from the 4.5% growth recorded in Q2, signaling a cooling pace after a stronger first half. The advance estimates offer an early glimpse into quarterly performance, drawn largely from data collected in the first two months of the quarter and subject to revision as more comprehensive data becomes available.
Quarter-on-Quarter and Year Overview
On a quarter-on-quarter basis, seasonally adjusted growth came in at 1.3%, slightly slower than the 1.5% pace seen in Q2. The softer quarterly growth aligns with a broader pattern of moderating activity across several sectors, even as some industries continue to expand despite the softer overall trajectory.
Key Sector Dynamics
The manufacturing sector was flat in Q3 after a 5% expansion in Q2, with declines concentrated in biomedical and general manufacturing clusters. MTI noted that other manufacturing clusters did experience output gains, helping to cushion the overall manufacturing performance. The sector nonetheless posted a quarterly growth of 6.1% on a seasonally adjusted basis, reversing a 0.7% contraction in Q2.
The construction sector grew 3.1% in Q3, down from a robust 6.2% in the previous quarter. Growth was supported by both public and private sector activity, but the quarter still registered a 1.2% contraction on a quarter-on-quarter basis, signaling softening momentum in construction as the year progresses.
Services, which include wholesale and retail trade, transportation and storage, contributed 2.5% growth in Q3, down from 4.9% in Q2. Among these, the machinery, equipment and supplies segment drove wholesale trade gains, while transportation and storage benefited from water and air transport activity. On a quarter-on-quarter basis, this group contracted 1.2%, a reversal from Q2’s 2.8% expansion.
Information, Communications, Finance and Professional Services
Services tied to information and communications, finance and insurance, and professional services grew by 4.4% in Q3, just above Q2’s 4.3% pace. Growth in ICT stemmed from IT and information services, while professional services benefited from head offices and business representative offices activity. The finance and insurance cluster was led by banking and ancillary financial service activities. This bundle of sectors advanced 1.3% quarter-on-quarter, a slight downshift from Q2’s 1.6% growth.
Other Services and Tourism-Linked Activity
The remaining services sectors—accommodation and food services, real estate, administrative and support services, and other services—rose by 4.1% in Q3, continuing a steady contribution to growth. All groups within this category expanded, except for food and beverage services, which faced weaker demand conditions. The accommodation sector, in particular, benefited from higher international visitor arrivals, underscoring how travel trends continue to influence Singapore’s economic landscape.
Outlook and Policy Context
In August, MTI upgraded Singapore’s full-year GDP forecast to a range of 1.5% to 2.5%, reflecting optimism from the stronger early-year performance. The Q3 data, while confirming growth, suggests a more gradual path for the rest of 2025 as external demand and domestic investment conditions evolve. MTI’s advance estimates are intended to guide policymakers and businesses, recognizing that revisions will occur as more detailed quarterly data becomes available.
Why These Numbers Matter for Businesses
For investors and firms, the split between manufacturing softness and resilient services offers a nuanced picture. Companies tied to biomedical and general manufacturing may recalibrate expectations, while those in IT services, banking, and logistics could ride on steadier demand. Construction’s slower momentum also signals a potential recalibration in project pipelines and public- and private-sector planning going into 2026.
Bottom Line
Singapore’s 2.9% GDP growth in Q3 2025 reflects a year of decelerating momentum after a robust mid-year performance. While the services sector continues to underpin expansion, manufacturing and construction show signs of moderation. The MTI’s advance estimates provide a crucial early read on the economy, with full-year forecasts maintained at a modest expansion range. Markets will be watching for revisions as more comprehensive data becomes available, along with external factors influencing trade, tourism, and investment flows.
