🇸🇬 Singapore

Singapore Downgrades 2025 GDP Forecast Amid US-China Trade Tensions

Singapore’s Ministry of Trade and Industry (MTI) has revised the nation’s 2025 GDP growth forecast to a range of 0% to 2%, down from the previous 1% to 3% projection. This adjustment comes in response to rising geopolitical risks, particularly the ongoing tariff escalations between the United States and China, which are dampening global trade flows and weakening investor confidence. Economists warn that Singapore, a trade-reliant economy, is increasingly vulnerable to external shocks. “If the trade war intensifies, Singapore could slip into a technical recession by the third quarter,” said one analyst.

COE Prices Spike in May 2025 Bidding Round

Singapore’s Certificate of Entitlement (COE) prices have risen sharply in the May 2025 bidding round. Category B (cars above 1,600cc or 130bhp) premiums surged past SGD 130,000, while commercial vehicle COEs hit a record high of over SGD 105,000. Analysts attribute the rise to pent-up demand, limited quota availability, and buyers rushing to make purchases ahead of anticipated further price hikes. The increase places further pressure on vehicle affordability in one of the world’s most expensive car markets.

🇺🇸 United States

Strong U.S. Job Growth Signals Labor Market Resilience

The U.S. economy added 285,000 jobs in April, beating expectations and pushing the unemployment rate down to 3.7%. The healthcare, hospitality, and tech sectors led the gains. Despite this upbeat labor data, economists caution that underlying concerns—such as stagnant wage growth and rising consumer debt—indicate possible turbulence ahead. The Federal Reserve is expected to maintain current interest rates as it balances inflation control with economic stability.

🇨🇳 China

U.S. Tariffs Threaten China’s Domestic Growth Strategy

Beijing’s efforts to pivot its economy toward domestic consumption are being tested by the latest round of U.S. tariffs on Chinese electronics, machinery, and renewable technology components. These tariffs, part of broader protectionist measures introduced by the U.S. administration, may reduce consumer confidence and dampen private-sector investment. “The new tariffs could delay China’s post-pandemic recovery by several quarters,” noted a policy expert at Renmin University. Officials in Beijing are expected to announce countermeasures in the coming days.

🇯🇵 Japan

Japan Mulls Fresh Economic Stimulus Amid Weak Inflation

Japan’s ruling coalition is in talks to unveil a new stimulus package aimed at supporting economic growth and combating deflation. Measures under discussion include increased infrastructure spending, subsidies for green energy projects, and additional support for low-income households. This comes amid persistently low inflation and signs of slowing consumer demand. Prime Minister Fumio Kishida has stressed the need for a “sustainable and inclusive” growth strategy to revitalize the world’s third-largest economy.

🌐 Global Markets

Markets Hold Steady Amid Mixed Economic Signals

Global markets remained relatively calm despite rising geopolitical and economic uncertainties. In the U.S., the S&P 500 rose modestly to 560.07, while Asian markets saw mixed performances—Japan’s Nikkei slipped slightly, and China’s Shanghai Composite fell by 0.5%. European equities traded flat as investors await further guidance on interest rate decisions from the European Central Bank later this week. Commodity prices remained stable, though oil saw a minor uptick due to renewed Middle East tensions.

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