The Ministry of Trade and Industry in Singapore has released its latest economic data, revealing a solid performance for the nation in 2025. According to the report issued on Tuesday, February 10, 2026, the economy grew by five percent last year. This marks a slight easing from the 5.3 percent growth recorded in 2024, but it remains a robust figure that underscores the country's economic resilience.
Upgraded Forecast for 2026
In a positive development, the ministry has raised its growth forecast for 2026. The new projection now stands at a range of two to four percent, which is an improvement from the previous estimate of one to three percent made in November. This upward revision reflects a more optimistic outlook based on recent global economic trends.
Global Economic Factors
The ministry attributed the improved forecast to a stronger-than-expected performance in the global economy. Most major economies posted robust growth in the fourth quarter of 2025, surpassing earlier expectations. Additionally, global trade activity has shown resilience despite ongoing challenges such as US tariffs. This momentum is expected to continue into 2026, providing a favorable environment for Singapore's economic expansion.
Key Drivers of Growth in 2025
Singapore's economic growth in 2025 was primarily driven by several key sectors. The manufacturing sector played a significant role, with the electronics cluster expanding strongly. This growth was supported by robust demand for AI-related electronics, highlighting the impact of technological advancements on the economy.
Other sectors that contributed to the growth include wholesale trade, particularly the machinery, equipment, and supplies segment, which also posted robust performance. The finance and insurance sectors further bolstered the economy, demonstrating the diversified nature of Singapore's economic base.
Overall, the data suggests that Singapore is navigating global economic uncertainties effectively, with a positive trajectory expected for the coming year. The upgraded forecast and strong sectoral performance indicate a stable and growing economy poised for continued success in 2026.
