SINGAPORE, Feb. 10 (Xinhua) -- Singapore's economy grew by 5 percent in 2025, easing from 5.3 percent in 2024, the Ministry of Trade and Industry said on Tuesday, while raising its growth forecast for 2026 to a range of 2 to 4 percent.

File photo: AFP

In November, the ministry had projected economic growth of 1 to 3 percent for 2026.

Since then, the global economy has outperformed expectations, with most major economies posting stronger-than-expected growth in the fourth quarter of 2025, the ministry said. Global trade activity also remained resilient despite U.S. tariffs, it added, and the momentum is expected to carry into 2026.

Singapore's growth in 2025 was driven mainly by the manufacturing, wholesale trade, and finance and insurance sectors, it said.

Within manufacturing, the electronics cluster expanded strongly, while the machinery, equipment and supplies segment of wholesale trade also posted robust growth, supported by strong demand for AI-related electronics.