Singapore’s economy grew 4.2% in Q3 2025, boosted by AI exports and trade, with 2025 GDP forecast raised to 4%.

Singapore's economy grew 4.2% year-on-year in Q3 2025, exceeding forecasts, driven by strong AI-related exports, robust trade with key partners, and resilient manufacturing. The government raised its 2025 GDP forecast to around 4%, up from 1.5%–2.5%, citing global demand and eased trade tensions. Q3 growth was 2.4% seasonally adjusted, up from 1.7% in Q2. For 2026, growth is projected at 1%–3%, amid ongoing U.S. tariffs, including a delayed 100% levy on branded drugs, and moderating global trade. Non-oil domestic exports are forecast at 2.5% for 2025, slowing to 0%–2% in 2026, with risks from trade uncertainty and weaker demand in non-electronics sectors.