The Singapore economy expanded faster in 2025 than in 2024, posting a higher growth rate in 4Q.
Based on advance estimates released by Singapore’s Ministry of Trade and Industry on Jan 2, overall in 2025, the Singapore economy expanded by 4.8 per cent, extending the 4.4 per cent growth in 2024.
The economy expanded by 5.7 per cent on a year-on-year basis in 4Q last year, faster than the 5 per cent growth in 4Q in 2024.
The manufacturing sector registered the highest year-on-year growth of all the sectors, at 7.6 per cent in 2025, from 4.3 per cent in 2024, propelled by strong growth in 4Q. The sector grew by 15 per cent in 4Q, doubling the growth of 7.4 per cent in Q4 in 2024. Growth during 4Q was largely driven by output expansions in the biomedical manufacturing and electronics clusters. Growth in biomedical manufacturing was primarily due to robust output growth in the pharmaceuticals segment, while growth in electronics was bolstered by sustained demand for AI-related semiconductors, servers and server-related products.
The construction sector posted the second highest year-on-year growth rate of 4.9 per cent in 2025, from 4.5 per cent in the previous year. Both public and private sector construction
grew in 4Q, although growth was slower in 4Q at 4.2 per cent as compared to 4.4% in the same period in 2024.
In the Services Producing Industries category, growth in 2025 had slowed to 4.1%, from 4.4 in the preceding year, with slower growth in two of the three sector groups.
The wholesale & retail trade and transportation & storage sectors grew by 4.5 per cent last year, a fall from 5 per cent in 2024. Growth in the wholesale trade sector was due to strong sales volumes in the machinery, equipment & supplies segment, led by the sales of telecommunications & computer equipment and electronic components from the AI boom.
Growth in the transportation & storage sector was largely supported by the water and air transport segments.
The group of sectors comprising the information & communications, finance & insurance and professional services sectors expanded by 4.1 per cent year-on-year last year, slowing down from 5.2 per cent in 2024. Growth in the information & communications sector was primarily driven by the IT & information services segment, while growth in the professional services sector was mainly supported by the head offices & business representative offices segment. Meanwhile, the finance & insurance sector grew on the back of growth across all segments, particularly the banking and insurance segments.
The bright spot was the third group of services producing sectors consisting of accommodation & food services, real estate, administrative & support services and other services sectors which grew by 3.4 per cent in 2025, faster than the 2.1 per cent in the preceding year. The accommodation sector expanded on account of a rise in international visitor arrivals.
Mix Results on Quarter-on-Quarter Growth Trend
Growth in two sectors groups have slowed down on a quarter-on-quarter seasonally-adjusted basis, although the overall growth rate in 2025 has improved.On a quarter-on-quarter seasonally-adjusted basis, the Singapore economy also expanded by 4.8 per cent in 2025, from 4.4 per cent growth in 2024.
The manufacturing sector demonstrated resilience and grew by 7.6 per percent in 2025 on a quarter-on-quarter basis, from 4.3 per cent in 2024. The growth rate in the second half was particularly robust, reversing the negative growth in the first half. The 3Q and 4Q quarter–on-quarter growth rates were 11.1 per cent and 9.2 per cent respectively as compared with -5.2 percent and -0.4 per cent in 1Q and 2Q respectively.
The construction sector grew by 4.9 per cent in 2025 on a quarter-on-quarter basis, expanding from 4.5 per cent in 2024. The construction sector reveals a downward growth trend to a negative growth of 0.4 per cent in 4Q, after registering positive posting growth of 6.5 per cent and 0.7 per cent in 2Q and 3Q respectively.
In the wholesale & retail trade and transportation & storage sectors, growth has slowed to 4.5 per cent on a quarter-to-quarter basis in 2025, from 5 per cent in the preceding year. Growth was positive at 0.4 per cent in 4Q, the slowest in all four quarters of the year.
Growth rate in the group comprising the information & communications, finance & insurance and professional services sectors had also slowed down to 4.1 per cent quarter-on-quarter in 2025, from 5.2 per cent in the preceding year. However, the last three quarters had been trending upward, powering to a strong growth of 5.6 per cent in 4Q, from a negative growth of 4.4 per cent in 1Q.
Meanwhile, growth in the group of accommodation & food services, real estate, administrative & support services and other services sectors posted higher growth of 3.4 per cent quarter-on-quarter in 2025, expanding by 2.1 per cent over 2024. Growth has turned negative by 0.5 percent in 4Q from positive growth in the preceding three quarters.
