Singapore Q4 GDP surges 5.7% on strong manufacturing performance

Singapore's economy expanded 5.7% year on year in the fourth quarter, the highest growth rate since 2021, driven mainly by a sharp rise in manufacturing output in the three months through December, the Ministry of Trade and Industry said. Manufacturing grew 15% in the quarter, up from 4.9% in the third quarter, with the biomedical manufacturing and electronics clusters cited as the main drivers.

Manufacturing accounts for about 20% of the city-state's GDP. Most other sectors contracted during the quarter, including construction and services. The advance estimate was higher than the revised 4.3% growth in the previous quarter and lifted full-year GDP growth to 4.8%, Prime Minister Lawrence Wong said in his New Year's message.

The 4.8% outcome exceeded the ministry's upgraded forecast of "around 4%" from November. Wong said, "This is a better outcome than we expected, given the circumstances," while warning that sustaining the current pace of growth would be challenging. The Ministry of Trade and Industry has forecast GDP growth of about 1%–3% for 2026.

Selena Ling, chief economist at OCBC, said the performance "showcased economic resilience through broad-based and diversified strengths in manufacturing, services, and construction," and she projected roughly 2% growth in 2026 if manufacturing eases to around 2.2% year on year because of a high base in 2025.

Key Topics

Business, Singapore, Gdp, Manufacturing, Trade, Forecasts