Singapore’s economy expanded by 4.8% in 2025, significantly exceeding earlier forecasts, according to preliminary government data released by the Ministry of Trade and Industry and highlighted by Prime Minister Lawrence Wong in his New Year message. This full-year growth outpaced official projections, which had been revised up to around 4% in late 2025, and was also stronger than many private sector estimates amid ongoing uncertainties in global trade and geopolitics.
The growth momentum was supported by a particularly robust final quarter, with the economy expanding 5.7% year-on-year in Q4 2025, the fastest quarterly pace in the year. The manufacturing sector emerged as a key driver, posting a sharp acceleration that was buoyed by strong global demand for AI-related semiconductors, biomedical products, and electronics. This helped offset broader external headwinds and contributed significantly to the overall economic performance.
While the expansion reflects resilience and adaptability in a challenging global environment, PM Wong cautioned that sustaining such high growth rates may be difficult going forward. He underscored the need for Singapore to “rethink, reset and refresh” its economic strategies to remain competitive and address structural challenges such as geopolitical fragmentation and evolving trade dynamics. The government is advancing an Economic Strategy Review with proposals expected to shape future policy directions.
In addition to headline GDP figures, Singapore’s non-oil domestic exports (NODX), a key indicator of trade performance, also grew around 4.8% in 2025, defying expectations despite global tariff uncertainties and export volatility. Economists expect some moderation in 2026 due to slower global trade growth and the eventual impact of trade restrictions, but Singapore’s diversified economy and role as a trade and innovation hub are seen as supportive factors.
(Sources: The Straits Times; Channel News Asia; Investing.com)
