IMF Cuts Singapore Growth Forecast Amid Trump Tariffs, US-China Trade War

Asia more vulnerable to uncertain trade environment, weaker global demand, it says

- Ovais Subhani

The International Monetary Fund (IMF) slashed its 2025 growth forecast for Singapore, along with those of its Asean neighbours, saying the outlook has dimmed amid US President Donald Trump's global tariffs and his escalating trade war with China.

The pace of Singapore's economic growth will drop to 2 per cent in 2025, from 4.4 per cent achieved in 2024, said IMF in the latest update to its World Economic Outlook report on April 24.

IMF's previous forecast for Singapore's growth this year made in October 2024 was 2.5 per cent.

The downgrade comes days after Singapore's Ministry of Trade and Industry cut its 2025 forecast to a range of zero per cent to 2 per cent, from 1 per cent to 3 per cent previously.

IMF lowered its growth forecast for the Asean region to 4.1 per cent for 2025, down from 4.8 per cent achieved in 2024 and 0.6 percentage point lower than its forecast in October 2024.

Mr Krishna Srinivasan, director of IMF's Asia and Pacific Department, said the lower forecast for Asean is in line with its 0.5 percentage point downgrade of the Asia and Pacific region, which is now likely to grow at 3.9 per cent.