Singapore reports 5.7% economic growth in Q4 2025, fastest quarterly pace of the year

Singapore’s economy expanded by 5.7 per cent year-on-year in the fourth quarter of 2025, according to advance estimates released by Singapore’s Ministry of Trade and Industry (MTI) on 2 January 2026.

This was the highest quarterly growth rate of the year, up from 4.3 per cent in the previous quarter and 5.0 per cent in the same period of 2024.

On a quarter-on-quarter seasonally adjusted basis, GDP grew by 1.9 per cent in Q4, compared to 2.4 per cent in Q3.

Full-year GDP growth for 2025 was estimated at 4.8 per cent, an improvement over the 4.4 per cent growth recorded in 2024. In November, the ministry had revised its full-year growth forecast to "around 4 per cent."

Manufacturing leads economic performance

MTI attributed much of the fourth-quarter growth to strong performance in the manufacturing sector, which expanded by 15.0 per cent year-on-year. This was a sharp acceleration from the 4.9 per cent growth in the previous quarter.

The ministry cited increased output in the biomedical manufacturing and electronics clusters. Growth in pharmaceuticals supported the biomedical segment, while demand for AI-related semiconductors, servers, and associated products bolstered electronics.

Manufacturing also recorded a 9.2 per cent quarter-on-quarter increase, following 11.1 per cent growth in the third quarter.

The construction sector grew 4.2 per cent year-on-year, supported by both public and private sector activity, though it contracted by 0.4 per cent on a quarterly basis.

Together, the goods-producing industries posted a 12.3 per cent year-on-year growth in Q4.

Mixed results across services

According to MTI, services-producing industries grew by 3.8 per cent year-on-year in the fourth quarter. This was a slight decline from 4.1 per cent in Q3. On a quarter-on-quarter basis, the sector expanded by 0.8 per cent.

Wholesale and retail trade, along with transportation and storage, grew by 3.9 per cent year-on-year. MTI linked this to strong sales in telecommunications and computer equipment, as well as increased activity in water and air transport.

The combined sectors of information and communications, finance and insurance, and professional services expanded by 4.2 per cent year-on-year, with a quarterly growth rate of 5.6 per cent. Growth was attributed to IT services, business support functions, and financial activity.

Accommodation and food services, real estate, administrative support, and other services grew 3.2 per cent year-on-year, supported by higher international visitor arrivals. However, the group contracted by 0.5 per cent compared to Q3.

Broader context and next steps

The MTI noted that these figures are based on data from the first two months of the quarter (October and November), and are subject to revision once more comprehensive data becomes available.

The full breakdown of GDP performance, including inflation, employment, and productivity, will be released in the Economic Survey of Singapore in February 2026.

Singapore’s economy expanded by 5.7 per cent year-on-year in the fourth quarter of 2025, according to advance estimates released by Singapore’s Ministry of Trade and Industry (MTI) on 2 January 2026.

This was the highest quarterly growth rate of the year, up from 4.3 per cent in the previous quarter and 5.0 per cent in the same period of 2024.

On a quarter-on-quarter seasonally adjusted basis, GDP grew by 1.9 per cent in Q4, compared to 2.4 per cent in Q3.

Full-year GDP growth for 2025 was estimated at 4.8 per cent, an improvement over the 4.4 per cent growth recorded in 2024. In November, the ministry had revised its full-year growth forecast to "around 4 per cent."

Manufacturing leads economic performance

MTI attributed much of the fourth-quarter growth to strong performance in the manufacturing sector, which expanded by 15.0 per cent year-on-year. This was a sharp acceleration from the 4.9 per cent growth in the previous quarter.

The ministry cited increased output in the biomedical manufacturing and electronics clusters. Growth in pharmaceuticals supported the biomedical segment, while demand for AI-related semiconductors, servers, and associated products bolstered electronics.

Manufacturing also recorded a 9.2 per cent quarter-on-quarter increase, following 11.1 per cent growth in the third quarter.

The construction sector grew 4.2 per cent year-on-year, supported by both public and private sector activity, though it contracted by 0.4 per cent on a quarterly basis.

Together, the goods-producing industries posted a 12.3 per cent year-on-year growth in Q4.

Mixed results across services

According to MTI, services-producing industries grew by 3.8 per cent year-on-year in the fourth quarter. This was a slight decline from 4.1 per cent in Q3. On a quarter-on-quarter basis, the sector expanded by 0.8 per cent.

Wholesale and retail trade, along with transportation and storage, grew by 3.9 per cent year-on-year. MTI linked this to strong sales in telecommunications and computer equipment, as well as increased activity in water and air transport.

The combined sectors of information and communications, finance and insurance, and professional services expanded by 4.2 per cent year-on-year, with a quarterly growth rate of 5.6 per cent. Growth was attributed to IT services, business support functions, and financial activity.

Accommodation and food services, real estate, administrative support, and other services grew 3.2 per cent year-on-year, supported by higher international visitor arrivals. However, the group contracted by 0.5 per cent compared to Q3.

The MTI noted that these figures are based on data from the first two months of the quarter (October and November), and are subject to revision once more comprehensive data becomes available.

The full breakdown of GDP performance, including inflation, employment, and productivity, will be released in the Economic Survey of Singapore in February 2026.