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Singapore GDP rose 4.8% in 2025 as the prime minister warned of a growth challenge
Summary
Singapore's economy grew 4.8% in 2025, a stronger outcome than expected. Prime Minister Lawrence Wong said keeping that pace will be challenging and that initial proposals to address the outlook will be announced soon.
Content
Singapore's economy grew more than expected in 2025, with gross domestic product rising 4.8%. Prime Minister Lawrence Wong said that outcome reflected stronger-than-anticipated demand related to AI for semiconductors and electronics and a more resilient global growth backdrop. He said sustaining the pace will be challenging and that an initial round of proposals to tackle economic pressures will be announced soon. The government has also signaled a continued focus on jobs for Singaporeans and on reinforcing social safety nets.
What was reported:
- GDP grew 4.8% in 2025, above the government's forecast of about 4%.
- Officials cited AI-related demand for semiconductors and electronics as a key factor.
- Prime Minister Lawrence Wong said sustaining the pace will be difficult and that proposals will be unveiled soon.
- The Ministry of Trade and Industry expects GDP growth of 1%–3% next year.
- The government indicated it will prioritize jobs for Singaporeans and strengthen social supports.
Summary:
The stronger 2025 result reduces immediate pressure but does not remove longer-term uncertainties. Initial policy proposals and a renewed focus on jobs and safety nets are expected in response to trade shifts and AI-driven change. Details of the measures will be announced by the government.
