Overview
- Singapore’s GDP expanded 4.8% in 2025, topping 2024’s 4.4% and beating private economists’ roughly 4.1% and MAS’s about 4% projections.
- Lawrence Wong cautioned that sustaining such growth will be difficult due to entrenched trade fragmentation and geopolitical tensions.
- Deputy Prime Minister Gan Kim Yong is steering an economic strategy review, with initial proposals due soon and a government response planned in Budget 2026 on Feb 12.
- The outperformance was linked to an AI-driven surge in semiconductor and electronics demand, with new investments such as Microsoft’s AI research lab bolstering Singapore’s hub appeal.
- Unemployment and inflation stayed low and real incomes rose; parallel work is progressing on age-friendly employment and securing clean energy through regional imports, low-carbon hydrogen and potential nuclear options.