Gross domestic product (GDP) last quarter grew 5.7% from the same period a year ago, according to an advance estimate Friday from the trade industry ministry.

That compares with a 6.3% median estimate in a Bloomberg survey and 4.3% the previous quarter.

“Manufacturing grew 15% year-on-year, due to strong growth from pharmaceuticals and demand for artificial intelligence-related semiconductors, servers and server-related products,” the ministry said.

The damage from Trump’s global tariffs on trade-reliant Singapore turned out to be less than expected, with exports holding up and a rebound in construction boosting domestic activity.

The government in November pegged 2026 growth at 1% to 3% – the third year in a row it gave the same initial forecast range.

That outlook far underestimated activity the previous two years: 2024 came in at 4.4%, and last year hit 4.8%, the fastest since 2021.

Meanwhile, inflation has been tame, and expected by Bloomberg Economics to “remain benign” this year.

The Monetary Authority of Singapore, its central bank, will release its latest policy statement by Jan 30, after getting one more inflation reading the week before.

Prime Minister Lawrence Wong this week cautioned that there a risks ahead as global trade and relationships fracture.

“We must be realistic: sustaining this pace of growth will be challenging,” Wong said Wednesday in a New Year message.

“We will face more obstacles to growth, and inflationary pressures may intensify,” Wong added.

GDP on a seasonally adjusted basis expanded 1.9% quarter-on-quarter, compared with a 2.7% median estimate in the survey and 2.4% in the previous quarter.

Final revised figures will be released next month.