Singapore Posts Solid 2025 Growth and Lifts Economic Outlook for 2026

Singapore’s economy delivered a robust performance in 2025, expanding by 5%, a pace slightly below the previous year but stronger than earlier official projections, reinforcing confidence in the city-state’s economic momentum amid a stabilising global environment.

Preliminary data from the Ministry of Trade and Industry show that growth moderated from 5.3% in 2024, reflecting a gradual normalisation after post-pandemic recovery, while still outperforming initial expectations. On the back of these results, authorities revised higher their growth outlook for 2026, now forecasting expansion in the range of 2% to 4%, compared with a prior estimate of 1% to 3%.

Officials pointed to improving external conditions as a key driver behind the more optimistic outlook. A sustained global push into artificial intelligence, continued fiscal support in major economies, and favourable international financial conditions are expected to support global demand, benefiting trade-oriented economies such as Singapore.

Economic activity accelerated markedly toward the end of the year. Fourth-quarter GDP surged 6.9% year-on-year, a sharp pickup from the previous quarter and the strongest quarterly expansion recorded since late 2021, highlighting renewed strength across key sectors.

For the full year, growth was underpinned primarily by manufacturing, wholesale trade, and financial services, with AI-related electronics demand emerging as a major contributor. Singapore’s deep integration into global technology and semiconductor supply chains allowed it to capitalise on rising investment linked to digital infrastructure and advanced computing.

Looking ahead, policymakers expect growth to ease from the elevated levels seen in 2025 but remain well-supported by structural demand in technology-driven industries, resilient trade flows, and a more balanced global economic backdrop.

Source: Trading Economics — Singapore GDP & Macroeconomic Indicators
https://tradingeconomics.com/stream?i=economy