As we welcome 2024, there’s good news on the economic front for Singapore. The Ministry of Trade and Industry (MTI) has published early estimates showing that the economy grew by a remarkable 5.7 per cent in the last quarter of 2025. This growth not only marks the fastest quarterly increase of the year but also outperforms the same period last year, which saw a growth rate of 5 per cent.
Annual Economic Performance
For the entire year of 2025, Singapore’s economy expanded by 4.8 per cent—higher than the 4.4 per cent growth recorded in 2024. Prime Minister Lawrence Wong referred to the performance as “stronger-than-expected,” offering an optimistic outlook in his New Year’s message.
- 4.8% growth for 2025
- 5.7% growth in Q4 2025
- Compared to 4.4% in 2024
Sector-Specific Growth Insights
The MTI noted that the manufacturing sector continued to thrive, witnessing a significant growth of 15 per cent year-on-year during the fourth quarter. This was primarily driven by:
- Biomedical manufacturing, especially pharmaceuticals.
- Electronics, bolstered by demand for AI-related semiconductors and servers.
In addition, the construction sector saw a growth of 4.2 per cent in the same quarter, down slightly from 5.1 per cent in the previous quarter. The services sector also displayed positive trends, with a notable boost in wholesale trade due to increased sales of electronic components.
Looking Ahead: Caution Amid Optimism
Despite the impressive growth figures, PM Wong cautioned that sustaining this level of growth won’t be easy, citing the persistent challenges posed by geopolitical tensions and the need for Singapore to adapt and innovate to remain competitive in a shifting global landscape.
According to MTI’s earlier forecasts, economic growth for 2026 is expected to moderate to a range of 1 to 3 per cent, as major economies may face a slowdown, affecting demand for Singapore’s exports.
While 2023 was a rollercoaster ride for the world economy, Singapore seems to have navigated these challenges with a commendable performance. However, it’s clear that continuous improvement and innovation will be crucial for the future.