Singapore’s economy grew 2.9% in the third quarter of 2025, marking a slowdown from the previous months, according to preliminary data released on Tuesday. The country’s manufacturing sector faced strong headwinds as US tariffs continued to pressure exports. The latest figures from the Ministry of Trade and Industry showed that growth in gross domestic product (GDP) was weaker compared to earlier quarters. GDP rose 4.1% in the first quarter and 4.5% in the second. Despite outperforming some analysts’ expectations, the 2.9% figure represents the slowest pace of growth this year. Officials attributed the decline mainly to weaker performance in export-driven industries. Manufacturing output remained flat compared to the same period last year, a notable slowdown from the 5% expansion recorded in the previous quarter. The ministry said that lower production in biomedical and general manufacturing sectors contributed to the weaker result. Singapore’s economy is closely tied to global trade, making it sensitive to any disruptions in the international market. The recent 10% tariff imposed by the United States has added new challenges for Singapore’s exporters, even though the rate is modest compared to other global tariff measures. Data also showed a continued drop in export performance. Singapore’s non-oil domestic exports shrank by 11.3% in August, following a 4.7% fall in July. Exports to the United States dropped nearly 29% in August, after plunging 42.8% in July. Shipments to China also fell sharply by 21.5%, deepening from a 12.3% decline the month before. The government noted that these trade pressures have been influenced by slower global demand and ongoing geopolitical tensions. Analysts believe the manufacturing sector will remain under pressure in the short term as companies adjust to higher costs and weaker overseas orders. While the overall economy still managed to expand, the pace of growth signals caution for the months ahead. The trade ministry said the preliminary GDP results are based on data from the first two months of the quarter and may be revised as more information becomes available. Despite the slowdown, Singapore’s outlook for 2025 remains slightly positive. In August, the trade ministry raised its full-year growth forecast to between 1.5% and 2.5%, up from the previous range of 0% to 2.0%. Officials said they expect the services and construction sectors to provide some balance against the weakness in manufacturing. Economists note that Singapore’s resilience lies in its strong fundamentals, including stable financial policies, diversified industries, and efforts to promote digital and green transformation. However, external factors such as US trade policy and global supply chain shifts will continue to pose risks. Many observers believe Singapore will rely on its open trade model and innovation-driven growth to sustain its long-term competitiveness. As one of the world’s most trade-dependent nations, Singapore’s ability to adapt to external shocks remains crucial for maintaining its economic stability. The slowdown in exports underscores the importance of diversifying markets and strengthening regional partnerships. With exports to both the US and China declining, Singapore may look toward emerging Asian economies and new trade agreements to offset the impact. The government has emphasized the need for continued investment in advanced manufacturing, research, and digital capabilities. These efforts aim to help local industries remain competitive amid changing global trade dynamics. While short-term challenges persist, analysts say Singapore’s steady policy framework and focus on innovation could help it navigate the uncertain economic environment. The nation’s adaptability and robust infrastructure are expected to remain key strengths in supporting future growth.