Singapore’s economy expanded by 4.8% year-on-year in 2025, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Friday morning. The figure marks a firmer pace than the revised 4.4% growth recorded in the previous year, signaling a broad-based recovery across key sectors. The MTI data underscore a resilient economy navigating a complex global backdrop, with momentum carried by services, manufacturing, and outward-facing sectors.
What drove the full-year 2025 growth?
The 2025 expansion was broad-based, reflecting improvements in both domestic demand and external environment. On the demand side, services sectors — including information and communications, financial services, and professional services — contributed meaningfully as consumer spending regained vitality and corporate investment picked up. Manufacturing also remained a pillar of growth, supported by electronics and biomedical clusters that benefited from healthier global demand and supply-chain stabilization.
Quarterly snapshot: Q4 GDP up 5.7%
In the fourth quarter alone, Singapore’s economy grew by 5.7% year on year, signaling sustained strength as the year drew to a close. Sequentially, the Q4 performance benefited from a combination of higher production output and resilient consumer and business sentiment. Analysts note that a softer external environment could temper gains in the near term, but the current quarterly results point to continued positive momentum into 2026.
Resilience amid global headwinds
Despite headwinds like global inflation dynamics and fluctuating demand from major trading partners, Singapore’s export-oriented industries have shown incremental resilience. The MTI emphasized that the growth path for 2025 was supported by a robust services sector, a rebound in manufacturing output, and steady domestic consumption. Policymakers have stressed the importance of productivity gains and targeted investments to sustain this growth trajectory.
Policy stance and outlook
With the 2025 numbers in view, economists expect Singapore to maintain a cautious but constructive outlook. The MTI’s advance estimate suggests that the economy can grow at a pace aligned with labor-market improvements and ongoing structural reforms. Market watchers will be watching for any revised figures or additional details on sector contributions when the final data are released, along with commentary on inflation trends and monetary conditions.
What this means for Singaporeans
For households and businesses, the stronger-than-expected growth translates into a healthier job market, potential wage growth, and improved business confidence. Consumers may benefit from steady service-sector activity and a stabilizing cost-of-living environment, while firms could secure more opportunities for expansion and investment in 2026.
Bottom line
Singapore’s 2025 performance, highlighted by a 4.8% annual expansion and a 5.7% Q4 GDP reading, points to a resilient economy navigating a volatile global landscape. If momentum continues, Singapore could sustain positive growth into the next year, supported by productivity upgrades and a diversified, innovation-led economy.
