“Gross domestic product (GDP) in 2026 is seen growing at 2%-4%, compared with an initial estimate of 1%-3%,” the trade and industry ministry said today.

“A sustained artificial intelligence boom, expansionary fiscal policies in several economies including the US, Germany and Japan, as well as accommodative global financial conditions, will support global growth,” the trade ministry said.

The figures highlight how trade-reliant Singapore has been able to ride the global economy’s resiliency despite US President Donald Trump’s initial volley of tariffs, with the global AI upturn spurring the nation’s high-technology manufacturing and exports.

Neighbours like Vietnam and Malaysia have also largely shrugged off the impact of higher US levies due to the increased demand for electronics.

“In the final quarter of last year, GDP expanded 6.9% compared with the same period the year prior,” the ministry said.

That beat both the median 6.5% forecast in a Bloomberg poll and the government’s advance estimate of 5.7%.

“The stronger-than-expected growth momentum seen in the last quarter of 2025 is projected to carry into 2026,” the trade ministry said in a statement.

That momentum also boosted GDP growth in 2025 to 5%, surpassing the government’s earlier 4.8% estimate. That’s still a slowdown from a revised 5.3% in 2024.

Prime Minister Lawrence Wong has cautioned it could be challenging for Singapore to maintain such a high pace of growth as global trade and relationships fracture.

Wong is expected to announce a refresh of its economic strategies when it unveils the 2026 budget on Thursday.