SINGAPORE, April 14 (Xinhua) -- Singapore's Ministry of Trade and Industry (MTI) on Monday revised down its full-year GDP growth forecast for 2025 for the country to a range of 0.0 to 2.0 percent, citing the far-reaching impact of sweeping U.S. tariffs on global trade and economic activity.
The previous forecast projected growth of between 1.0 and 3.0 percent.
In a statement, the ministry said the regional economic outlook will be weakened by falling external demand, in part due to the broader repercussions of the tariffs on global trade flows and growth. "Business and consumer sentiments will also be dampened, thereby crimping domestic consumption and investments in many economies," it noted.
For Singapore, the MTI assessed that the external demand outlook has "weakened significantly" for the rest of the year, negatively affecting the outlook for outward-oriented sectors. The manufacturing sector is expected to be particularly impacted by slowing global demand. This, along with weakening global trade, will likely weigh on the performance of the wholesale trade sector.
Similarly, the transportation and storage sector is projected to face headwinds, as reduced global trade volumes drag down demand for shipping and air cargo services.
The finance and insurance sector could also see softer performance. Weaker trading activity amid heightened risk-off sentiment may depress net fees and commission income across banking, fund management, foreign exchange, and securities trading.
In addition, the uncertain economic environment is likely to dampen firms' capital investment plans and constrain credit intermediation activity.
Payments firms may also experience slower growth, in tandem with subdued business activity and weaker consumer spending, the MTI added. ■
