Singapore Upgrades Growth Outlook

(RTTNews) - Singapore's economic growth for the current year was upgraded on Friday after the city-state economy posted a stronger-than-expected expansion in the third quarter.

The Ministry of Trade and Industry forecast the economy to grow around 4 percent in 2025, which was revised up from 1.5 percent to 2.5 percent projected earlier. For 2026, the ministry projected the economy to expand 1.0 percent to 3.0 percent.

For the first three quarters of 2025, Singapore's GDP growth averaged 4.3 percent year-on-year.

The upgrade in growth outlook reflects strong front-loading of orders from the US in the second quarter and an improvement in the outlook for Singapore's external demand due to the de-escalation in trade tensions between the US and several of its trading partners.

The MTI observed that global economic conditions have turned out to be more resilient than expected. For the rest of the year, the ministry noted that demand for AI-related electronics should continue to support manufacturing and wholesale trade sectors.

Gross domestic product grew 4.2 percent on a yearly basis in the third quarter, extending the 4.7 percent expansion posted in the previous quarter.

On a quarter-on-quarter basis, GDP expanded 2.4 percent in third quarter, faster than the 1.7 percent expansion in the second quarter.