Catenaa, Saturday, February 14, 2026- Singapore’s economy expanded 5 percent in 2025, easing slightly from 5.3 percent a year earlier, as authorities upgraded the city-state’s growth outlook for 2026 on stronger global momentum.
The Ministry of Trade and Industry said Tuesday it now expects the economy to grow between 2 and 4 percent in 2026, up from a previous forecast of 1 to 3 percent issued in November. The revision reflects firmer-than-expected global conditions and resilient trade flows late last year.
Officials said the global economy performed better than anticipated in the fourth quarter of 2025, with most major economies posting stronger growth.
Global trade activity remained resilient despite the impact of US tariffs, and the momentum is expected to extend into 2026.
Domestic growth in 2025 was driven largely by manufacturing, wholesale trade, and finance and insurance, the ministry said.
Manufacturing output was supported by a strong expansion in the electronics cluster, reflecting sustained global demand for semiconductors and other advanced components.
Wholesale trade also recorded solid growth, led by machinery, equipment and supplies, as demand rose for artificial intelligence-related electronics.
The finance and insurance sector continued to benefit from higher regional activity and cross-border capital flows.
The upgraded outlook suggests Singapore may be better positioned to weather external uncertainty than previously expected, though officials continue to flag risks tied to geopolitics, trade policy shifts, and financial market volatility.
Singapore’s open, trade-dependent economy remains sensitive to changes in global demand, but recent data point to steady support from technology manufacturing and services linked to regional growth.
