Singapore’s Ministry of Trade and Industry has raised its 2026 economic growth outlook after stronger-than-expected global and domestic performance.
The Ministry of Trade and Industry (MTI) announced on 10 February 2026 that Singapore’s economy grew by 5.0 per cent in 2025 and that the country’s GDP growth forecast for 2026 has been upgraded to between 2.0 and 4.0 per cent .
MTI said the improved outlook reflects stronger global economic conditions and continued demand linked to artificial intelligence (AI) investments. The earlier forecast for 2026 was set at 1.0 to 3.0 per cent.
In the fourth quarter of 2025, Singapore’s economy expanded by 6.9 per cent year-on-year, faster than the previous quarter. Growth for the full year was mainly supported by manufacturing, wholesale trade, and finance and insurance sectors, with electronics and AI-related demand playing a key role .
MTI noted that global trade remained resilient despite US tariffs, supported by supply chain adjustments and strong AI-related exports. Expansionary fiscal policies in major economies such as the United States, Germany, and Japan also helped improve the outlook for 2026.
Looking ahead, MTI said Singapore’s manufacturing and trade-related services sectors are expected to benefit from continued AI-driven demand. However, consumer-facing sectors such as retail trade and food and beverage services may remain subdued due to changes in spending and dining habits.
The announcement was made in Singapore and reflects MTI’s latest assessment of global and domestic economic conditions.
Source: MTI
