Singapore's economy expanded by 3.8 percent year-on-year in the first quarter of 2025, according to advance estimates released by the Ministry of Trade and Industry on Monday.

The pace of growth was slower than the 5.0 percent expansion recorded in the previous quarter.

On a quarter-on-quarter seasonally adjusted basis, the economy contracted by 0.8 percent, a reversal from the 0.5 percent growth in the fourth quarter of 2024.

The ministry attributed the contraction to sequential declines in the manufacturing sector and certain outward-oriented services industries, such as finance and insurance, amid softening external demand.

The ministry noted that the advance estimates are primarily based on data from January and February and are intended to provide an early snapshot of economic performance. These figures are subject to revision when more comprehensive data become available.