Staff Reporter

In a recent budget speech delivered in Parliament, Singapore’s Prime Minister Lawrence Wong highlighted that the nation will feel the effects of escalating global tensions, forecasting a slowdown in economic growth this year.

As both the United States and China engage in a competitive struggle for dominance, Wong emphasized that their increasingly assertive actions will have significant implications for the global economy.

“These pressures are set to reshape the global landscape and dampen prospects for growth,” Wong stated. “As a small and open economy, Singapore will inevitably be affected.”

While Singapore’s GDP surged to 4.4% in 2024, up from a revised 1.8% in 2023, the Ministry of Trade projects a moderation in growth for 2025, estimating it will range between 1.0% and 3.0%. Wong reiterated these forecasts during his address.

As Singapore approaches an election, the upcoming budget is expected to center on cost of living and employment challenges. This comes at a time when the nation enjoys robust economic growth and low inflation, yet faces uncertainties regarding U.S. trade policies.