Singapore’s economy is anticipated to grow at a rate of 2.6% in 2025, according to Economists.

Despite being in sync with most of the government’s projections, the economy of Singapore is expected to grow by 2.6% this year, as per the survey of the Monetary Authority of Singapore. Economists, however, warned that geopolitical tensions and trade uncertainties might pose risks to this growth.

Last month, a survey was conducted of 20 economists, and they jointly kept the median forecast for 2025 intact like that of the last survey in December. A 4.4% increase in the economy of Singapore was recorded in 2024, proving itself as a stronger-than-expected recovery.

Economic Growth and Monetary Policy

The Ministry of Trade and Industry believes that Singapore’s economy will grow this year by 1.0% to 3.0%. Using January’s slowing inflation and subdued growth assumptions, MAS eased monetary policy.

Looking ahead, less than 20% of economists expect the central bank will once again make a change in its policy next April; however, around 30% anticipate a shift sometime in July, signaling a cautious approach to managing economic conditions.

Inflation Trajectories and Forecasts

Economists forecast the headline inflation rate for 2025 to be around 1.7% while the rate for core inflation is pegged at 1.5%. These values are lower compared to the estimates of the prior survey as price pressures tend to stabilize.

According to MAS core inflation would be within the range of 1.0% to 2.0% average in 2025. Core inflation in January alone was already low at 0.8%–the lowest in over three years–showing much room for easing inflationary pressures.

Market Outlook: Where to Next Invest?

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Singapore is in constant flux which thus calls for analyses of every trend and economic policy for investors and businesses.