Singapore’s economy grew 5.7 per cent year-on-year in the fourth quarter of 2025, after a 4.3 per cent expansion in the previous quarter, according to advance estimates from the Ministry of Trade and Industry (MTI) on January 2.
The strong growth was largely driven by manufacturing. MTI said biomedical manufacturing was “primarily supported by robust growth in the pharmaceuticals segment,” while electronics growth was boosted by “sustained demand for artificial intelligence-related semiconductors, servers, and server-related products.” On a seasonally adjusted quarter-on-quarter basis, manufacturing grew 9.2 per cent, extending the 11.1 per cent expansion seen in the third quarter.
Construction and Services Growth
The construction sector expanded 4.2 per cent in the fourth quarter, slightly lower than the previous quarter’s 5.1 per cent, supported by both public and private sector projects.
The services sector also performed well. The export-driven wholesale and retail trade, along with transportation and storage, grew 3.9 per cent, up from 3.7 per cent in the previous quarter. MTI said, “Growth in the wholesale trade sector was due to strong sales volumes in the machinery, equipment, and supplies segment, led by the sales of telecommunications and computer equipment and electronic components amidst the AI boom.”
Information and communications, finance and insurance, and professional services sectors grew 4.2 per cent, following a 4.5 per cent expansion in the previous quarter.
Full-Year Growth Strongest Since 2021
Prime Minister Lawrence Wong announced that Singapore’s economy grew 4.8 per cent for the full year of 2025, topping MTI’s November forecast of around 4 per cent. It also exceeded the August range of 1.5 to 2.5 per cent and is the fastest growth since 2021, when the economy expanded 9.8 per cent.
Earlier concerns over US tariffs did not impact growth as much as expected. Global economic conditions remained more resilient, and the AI boom further boosted exports of electronics and semiconductors.
