Singapore’s economy grew by a "stronger-than-expected" 4.8% in 2025, higher than last year's 4.4%, says Prime Minister Lawrence Wong in his New Year message on Dec 31.
"We kept unemployment and inflation low and real incomes rose across the board. This is a better outcome than we expected given the circumstances but we must be realistic. Sustaining this pace of growth will be difficult," Wong says.
In his speech, Wong acknowledged the challenges brought about by the second Trump administration's trade and tariff policies. "Fractured trade and geopolitical tensions are not transient problems, but permanent features of a more fragmented world. We will face more obstacles to growth and inflationary pressures may intensify. And as a small and open economy, Singapore cannot fully shield ourselves from these headwinds," he adds.
Earlier, on Nov 21, the Ministry of Trade and Industry (MTI) upgraded its 2025 GDP growth forecast to “around” 4% from 1.5% to 2.5%. Singapore’s GDP growth for 2026 is expected to come in at 1% to 3%, the ministry says.
MTI will release the advance GDP estimates for 4Q2025 and the entire year on Jan 2.
