Singapore’s economy beats forecasts in first quarter
SINGAPORE
Singapore's economy rose faster than expected in the first quarter year-on-year, official data showed on Thursday, pushed by stronger global demand as businesses rushed to beat the imposition of higher U.S. tariffs.
The government, however, warned that downside risks remained as a full-blown trade war between the United States and China could still reignite after the end of a 90-day pause.
Singapore's trade-oriented economy expanded by 3.9 percent in the three months to March from the same period a year before, surpassing an advance government estimate of 3.8 percent.
It was, however, weaker than the 5 percent expansion in the December quarter.
And on a quarter-on-quarter basis, the economy contracted by 0.6 percent, signalling the risks ahead.
The year-on-year growth in the first quarter was driven by the manufacturing and wholesale trade sectors due to "front-loading activities ahead of anticipated U.S. tariff hikes," the Trade Ministry said.
Although U.S. President Donald Trump imposed a baseline 10 percent tariff on Singapore, the city-state is vulnerable to a global economic slowdown caused by the much higher levies on dozens of other countries because of its heavy reliance on international trade.
The ministry maintained its forecast for the economy to grow at between zero to 2 percent this year. This was a downgrade from its previous growth forecast of between one and three percent.
