Singapore’s Q3 2025 GDP: A Mixed Picture
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 Tuesday. This pace marked a slowdown from the 4.5% growth logged in the second quarter, reflecting varied performance across sectors as Singapore navigates a more cautious global environment.
MTI had previously raised its full-year outlook in August, upgrading the expected GDP growth for 2025 to a range of 1.5% to 2.5%, after a stronger-than-anticipated first half. The revised forecast signaled continued resilience, though the Q3 results indicate a softer tempo in the third quarter. It’s important to note that advance GDP estimates are based largely on the first two months of the quarter and are subject to revision as more comprehensive data become available.
Quarter-on-Quarter Growth
On a quarter-on-quarter seasonally adjusted basis, Singapore’s GDP rose by 1.3% in Q3, a step down from the 1.5% growth seen in Q2. This moderation aligns with the broader pattern of cooling momentum seen across major economies as supply chains recalibrate and demand conditions evolve.
Sector Highlights: Winners and Laggards
Manufacturing: The manufacturing sector essentially held flat in Q3 after recording a 5% expansion in Q2. MTI noted declines in the biomedical and general manufacturing clusters, even as other manufacturing segments posted gains. Overall, manufacturing still advanced 6.1% on a quarter-on-quarter basis, reversing a 0.7% contraction in the prior quarter. The contrast within manufacturing underscores how specialization and global demand swings can shape sub-sector trajectories.
Construction: Construction expanded 3.1% in Q3, but that growth cooled from 6.2% in Q2. The quarterly data also showed a reversal in momentum, with the sector contracting 1.2% on a seasonally adjusted basis after a strong Q2. MTI attributed the mixed outcome to an uptick in public and private sector construction activity, even as quarterly momentum eased.
Services – Wholesale, Retail, Transport: The combined services group, covering wholesale and retail trade and transportation/storage, grew 2.5% in Q3, down from 4.9% in Q2. A closer look points to the machinery, equipment and supplies segment pushing wholesale trade, while transportation and storage benefited from water and air transport activity. On a quarterly basis, this group contracted 1.2%, easing from a 2.8% expansion previously.
Information & Communications, Finance & Insurance, Professional Services: This cluster expanded 4.4% in Q3, slightly higher than the 4.3% growth in Q2. Growth drivers included IT and information services, head offices and business services, and banking activities. The pace here slowed modestly to 1.3% quarter-on-quarter, down from 1.6% in Q2, reflecting a more tempered expansion in financial and professional services.
Accommodation, Real Estate, Admin & Other Services: The remaining services sectors posted a solid 4.1% growth in Q3, continuing a trend of broad-based service-sector expansion. Notably, the accommodation sector benefited from higher international visitor arrivals, underscoring the tourism recovery tailwinds that supported the services complex in the quarter.
What This Means for Singapore’s Economy
The Q3 performance highlights a gradual normalization after a brisk H1 2025. While the overarching economy expanded, the slower pace in Q3 suggests policymakers and businesses should maintain prudence amid mixed domestic demand and external headwinds.
Looking ahead, observers will be watching for revisions to the advance estimates as more comprehensive data become available and as global conditions evolve. If the upcoming data confirm a continued, yet modest, expansion, Singapore could stay on a path of stabilization with selective investments in growth areas such as technology services, logistics, and construction-related projects that supported activity in Q3.
Bottom Line
Singapore’s Q3 2025 GDP growth of 2.9% reflects a decelerating pace yet underlines a diversified economy with strength in IT services, financial services, and a recovering tourism sector. The MTI’s nuanced breakdown offers policymakers and investors a clearer sense of where momentum remains and where risk factors may emerge as Singapore proceeds through 2025’s final stretch.
