Singapore's Economy Surpasses Forecasts with 4.8% Growth in 2025

Singapore's economy delivered a surprising performance in 2025, achieving a full-year growth rate of 4.8%, the strongest annual growth since 2021. This figure significantly surpasses the government's November forecast of 4.0% and the previous range of 1.5% to 2.5%. The robust growth was primarily fueled by expansions in biomedical manufacturing and electronics sectors, supported by sustained global demand for AI-related semiconductors and servers.

In the fourth quarter of 2025 alone, Singapore's GDP grew by 5.7% year-on-year, exceeding the expectations of economists polled by Reuters, who had anticipated a 3.7% rise. The quarter also saw a 1.9% expansion on a seasonally adjusted basis compared to the previous quarter. The demand for AI-related semiconductors, servers, and server-related products played a pivotal role in driving this growth, highlighting the resilience of Singapore's export-dependent sectors.