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Singapore’s economy delivered a stronger-than-expected performance in the fourth quarter of 2025, reinforcing optimism about the country’s growth momentum heading into 2026. According to official government data released on Tuesday, Singapore’s gross domestic product (GDP) expanded by 6.9% year-on-year in the final quarter of 2025, significantly outperforming the official advance estimate of 5.7%. This robust showing highlights the resilience of Singapore’s economy amid a gradually improving global backdrop.
On a quarter-on-quarter basis, Singapore’s GDP grew by 2.1%, also exceeding the earlier estimate of 1.9%. The stronger quarterly growth suggests sustained economic momentum across key sectors, supported by external demand and domestic activity. For the full year, Singapore’s economy expanded by 5.0% in 2025, slightly above the preliminary reading of 4.8%, though marginally below the revised 2024 growth rate of 5.3%.
In response to the better-than-expected economic performance, Singapore’s Ministry of Trade and Industry raised its GDP growth forecast for 2026. The revised outlook now projects economic growth between 2.0% and 4.0%, an upward adjustment from the previous range of 1.0% to 3.0%. The ministry attributed the upgrade to stronger global economic momentum in the fourth quarter of 2025, which is expected to carry over into 2026 and support Singapore’s trade-dependent economy.
Adding to the positive outlook, Enterprise Singapore also revised its forecast for non-oil domestic exports growth. The agency now expects exports to grow between 2.0% and 4.0% in 2026, compared with its earlier projection of 0% to 2.0%. Strong demand linked to artificial intelligence technologies and elevated gold prices are expected to continue supporting Singapore’s key non-oil exports.
However, officials cautioned that risks remain. Potential headwinds include an escalation in global trade tensions and a possible correction in AI-related investment demand, which could weigh on export performance. Even so, the latest data underscores Singapore’s solid economic footing as it enters 2026, with growth prospects supported by global recovery trends and strategic industries.
