Singapore's GDP surged by 5.7% y-o-y in the final quarter of 2025, a pick up from 4.3% chalked up in the preceding 3Q 2025, according to advanced estimates by the Ministry of Trade and Industry.
The strong growth was largely driven by biomedical manufacturing, with strong output growth in pharmaceuticals.
Electronics manufacturing, bolstered by sustained demand for AI-related semiconductors, servers and server-related products, helped lift the numbers too.
The construction sector, in the midst of what has been described as a multi-year upcycle, grew 4.2% y-o-y, moderating from the 5.1% in the preceding 3Q2025.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.9%, easing from the 2.4% expansion in the third quarter.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors collectively grew by 3.9% in the fourth quarter, extending the 3.7% growth in the previous quarter.
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Growth in wholesale trade was driven by strong sales volumes in the machinery, equipment & supplies segment, led by the sales of telecommunications & computer equipment and electronic components amidst the AI boom.
The water and air transport segments helped move the overall growth of the transportation & storage sector.
The information & communications, finance & insurance and professional services sectors grew by 4.2% in 4Q, extending the 4.5% growth in the preceding 3Q.
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Growth in the information & communications sector was primarily driven by the IT & information services segment, whereas that in the professional services sector was mainly supported by the head offices & business representative offices segment.
Meanwhile, the finance & insurance sector grew on the back of growth across all segments, particularly the banking and insurance segments.
On a quarter-on-quarter seasonally-adjusted basis, this group of sectors expanded by 5.6%, accelerating from the 1.8% expansion in the third quarter.
The remaining sectors, such as accommodation & food services, real estate, administrative & support services, were up 3.2%, a slowdown versus the preceding 3Q's 4%.
On a quarter-on-quarter seasonally-adjusted basis, the sectors as a whole contracted by 0.5%, a pullback from the 1.2% growth in the third quarter.
As announced by Prime Minister Lawrence Wong in his New Year's Day message, Singapore, for the whole of 2025, grew by 4.8%, a slight acceleration from 4.4% in 2024.
