Southeast Asia Information Port (www.dnyxxg.com) – Affected by global uncertainty and increased trade barriers, Singapore's economy will find it difficult to replicate its 2024 performance this year, with economic growth potentially slowing in 2025. However, this trend has not yet directly impacted employment and wage growth.
Singapore's Ministry of Trade and Industry (MTI) stated that Singapore's economy grew by 4.4% in 2024, higher than previous forecasts. Nevertheless, growth expectations for 2025 remain between 1% and 3%. The government also warned that geopolitical conflicts and US trade policies could pose risks.
While an economic slowdown may affect employment, the labor market remains stable, with an unemployment rate of 2%. The MTI continues to closely monitor developments and stated that global trade tensions could indirectly affect Singapore. Manufacturing and services are expected to continue growing, but at a slower pace.
Inflation may remain high, leading to tighter financial conditions and potentially posing risks to the banking system. (End)
