Southeast Asia Information Port (www.dnyxxg.com) – According to a report by the Vietnam News Agency correspondent in Singapore, Singapore's Ministry of Trade and Industry (MTI) announced on the 10th that, boosted by better-than-expected economic performance in the fourth quarter of 2025, it has raised its full-year GDP growth forecast for 2026 to 2% to 4%, a significant increase of 1 percentage point from the previous forecast of 1% to 3%.
The core support for this upward revision is the strong performance of the Singaporean economy: GDP grew by 6.9% year-on-year in the fourth quarter of 2025, far exceeding market expectations. At the same time, the MTI also revised upward its growth figures for the past two years – the full-year growth forecast for 2025 was revised from 4.8% to 5%, and the growth rate for 2024 was revised from 4.4% to 5.3%.
In terms of growth drivers, Singapore's economic growth in 2025 will be mainly driven by three sectors: manufacturing, wholesale trade, and finance and insurance. Strong global demand for AI-related electronic devices has directly driven significant growth in the electronics industry; meanwhile, the favorable low-interest-rate environment has facilitated a comprehensive recovery across all segments of the financial and insurance sectors.
Analysts point out that the growth momentum triggered by the AI investment wave will continue. Recently, several leading global technology giants have announced investments exceeding US$660 billion in AI infrastructure by 2026, which will continue to drive demand for electronic hardware such as semiconductors—a core export product for Singapore—and will bring sustained benefits to related industries.
MTI further stated that the strong growth momentum at the end of 2025 is expected to continue into 2026. Furthermore, the expansionary fiscal policies implemented by major economies such as the United States, Germany, and Japan will create a synergistic effect with the global AI investment boom, coupled with a favorable global financial environment, and are expected to continue to support the global economy and Singapore's economic growth in the coming quarters. (End)
