Economists raise S'pore growth forecasts for 2025, 2026

But they warn of risks to outlook if trade tensions escalate, or Al bubble bursts

- Ovais Subhani Senior Business Correspondent

Private sector economists expect Singapore's economy to grow 4.1 per cent in 2025 and 2.3 per cent in 2026, higher than their previous forecasts, amid an improved outlook for exports, manufacturing, finance, construction, and wholesale and retail trade.

The economists had earlier predicted Singapore's gross domestic product to increase by 2.4 per cent in 2025 and 1.9 per cent in 2026.

The latest estimates in the quarterly survey of professional forecasters by the Monetary Authority of Singapore (MAS) released on Dec 17 follows the Ministry of Trade and Industry (MTI) raising its growth forecast in November.

MTI hiked its projection of growth in 2025 to about 4 per cent from the 1.5 per cent to 2.5 per cent range it had forecast in August. In its first forecast for 2026, MTI said the economy is likely to grow by a slower pace of 1 per cent to 3 per cent.