Singapore raised its 2025 economic outlook Friday after stronger growth in the third quarter, but warned that expansion is likely to cool in 2026 as the U.S. tariffs weigh on global demand.
The Ministry of Trade and Industry upgraded Singapore’s 2025 GDP forecast to around 4%, up from an earlier range of 1.5% to 2.5%, largely thanks to the better-than-expected economic growth in the third quarter.
“Global economic conditions have turned out to be more resilient than expected,” the MTI said in a statement, citing stronger demand from key trading partners, stronger demand for semiconductor exports tied to the artificial-intelligence boom and the de-escalation in U.S.-China trade tensions.
The economy grew 4.2% in the July-to-September period from a year earlier, extending the second quarter’s 4.7% increase, government data showed. The third-quarter growth rate also exceeded the official advance estimate of 2.9% compiled in October and economists’ forecast of 4.0% in a Reuters poll, despite elevated trade headwinds during the three months.
For 2026, the authorities expected Singapore’s economy to grow at a range of 1% to 3%.
