Singaporeans brace for challenging times ahead: Recession fears, rising costs, and shifting spending priorities
Amidst global uncertainty and rising cost of living, Singaporeans are re-assessing how and where they spend their money. Concerns over recession, income stability, and inflation are prompting many to cut back on discretionary expenses and focus instead on financial security. While Singapore’s economy continues to show resilience, consumer sentiment reflects growing caution.
According to the latest YouGov survey, nearly half of Singaporeans (45%) believe the global economy will fall into a recession within the next six months, while only 15% expect growth and another 15% anticipate stability.[BS1] Sentiment around the local economy mirrors this outlook, with 25% anticipating a domestic recession and just 18% expecting growth. A larger share (30%) believes the local economy will remain stable.
Younger generations show greater optimism
While overall outlook remains cautious, younger Singaporeans display more confidence in the country's economic resilience. Nearly a third of Gen Z (29%) and over a quarter of millennials (26%) anticipate economic growth in Singapore. In contrast, Gen X remains more sceptical, with 29% expecting a domestic recession.
Cost of living tops the list of public concerns
The cost of living remains the top concern for 83% of Singaporeans in the next six months. Job security (45%) and the broader economy (41%) also feature prominently.
Global trade tensions (37%) and geopolitical risks (25%) add to the anxiety. Gen Z and millennials are especially worried about housing affordability, while Baby Boomers are more likely to prioritize healthcare access, affordability, and elderly care- highlighting clear generational differences in financial pressures.
A vast majority believe the cost of living will continue to increase, with 47% expecting a definite rise and another 42% anticipating a possible rise. These concerns align with recent experiences: 46% of respondents report a decrease in disposable income over the past six months, compared to just 17% who saw an increase.
Adjusting financial priorities: F&B, Luxury, and Entertainment spend to take a hit
In response to changing economic conditions, consumers are rethinking discretionary spending. The Food & beverage sector is likely to take the biggest hit, with a quarter saying they will cut-back on dining out (26%). Indulgent foods and drinks (23%) and food delivery (20%) are also expected to see reduced spending. Entertainment, bars, pubs, and luxury goods are also expected to see reduced demand, with 18–21% planning to trim spending in these areas.
In contrast, savings and investments are being prioritised. 31% of Singaporeans plan to allocate more money to savings in the next six months, and 20% on investments. Among Gen Z, these numbers rise to 37% and 29% respectively, reflecting a strong focus on future financial security. This [JN1] generation is also inclined to spend more on 'self-care' categories such as indulgent food and drinks (15%), beauty and personal care (14%), and wellness (13%).
Travel spending is mixed- 21% say they will spend more on vacations, while 17% plan to cut back. Healthcare is also prioritised, with 19% planning to increase their spending and only 6% expecting to reduce it. For Baby Boomers, healthcare is especially important, with 24% likely to boost their expenditures in this area.
Notably, 23% of respondents, especially Baby Boomers (28%), say they do not intend to cut back on any category, indicating a small but confident segment of the population continuing their lifestyle as usual.
Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. The data is based on the responses of 4035 adults aged 18+ years in Singapore, collected over four waves of online surveys between May and June 2025. YouGov will continue tracking public sentiment around the macroeconomic trends in the months ahead. Learn more about YouGov Surveys: Serviced