Singapore’s Economy Hits a Speed Bump Amid Global Trade Jitters
After a powerful economic rebound, Singapore is now feeling the impact of worldwide trade tensions, the International Monetary Fund (IMF) has concluded. The island nation’s impressive 4.4% growth in 2024, fueled by consumer spending and a tech sector revival, has given way to a 0.6% economic dip in the first quarter of 2025. This slowdown hits key export-focused industries like manufacturing and trade. On the bright side, inflation has fallen below 2%, but unemployment has inched up slightly to 2.1%. While the IMF suggests a possible easing of monetary policy to boost the economy, it acknowledges Singapore’s solid financial standing and the government’s ability to provide financial support if needed.
Singapore: Key Economic Indicators
| Indicator | 2023 | 2024 | 2025 (Proj.) | 2026 (Proj.) |
| Real GDP Growth (%) | 1.8 | 4.4 | 1.7 | 1.7 |
| CPI Inflation (Avg. %) | 4.8 | 2.4 | 1.1 | 1.5 |
| Unemployment Rate (Avg. %) | 1.9 | 2.0 | 2.3 | 2.3 |
| Current Account Balance (% of GDP) | 17.7 | 17.5 | 17.1 | 16.9 |
| Capital Adequacy Ratio (Q1 2025) | N/A | N/A | 18.9% | N/A |
Source: IMF Data