Singapore’s economic growth is set to moderate after a strong outturn in 2024 and the first three quarters of 2025. Robust consumption, investment and front-loading of activities in expectation of United States tariffs lifted growth to 4.4 percent in 2024 and 4.3 percent in the first three quarters of 2025. The momentum was further aided by the global electronics upcycle, artificial intelligence-related demand, and firm activity in financial services.
As U.S. reciprocal tariffs take effect, Singapore’s growth is projected to moderate to 4.1 percent in 2025 and 2.5 percent in 2026, as global demand softens, front-loaded exports unwind and investment sentiment turns more cautious. Inflation is subdued and expected to remain low. With growth slowing and global commodity prices stabilizing, headline inflation is projected to hover around 0.9 percent in 2025 and 0.8 percent in 2026, while inflationary pressures remain contained.