Singapore's economy is getting a boost from AI
Singapore just raised its 2026 GDP growth prediction to 2-4% (up from 1-3%), after a strong showing last year—think 5% overall growth and about 4.8% in the fourth quarter of 2025 (Q4 2025).
The big driver? A surge in demand for AI tech, which has supercharged the electronics sector and boosted semiconductor production for data centers.
AI's impact on the economy
AI isn't just a buzzword here—it's actually moving the needle on exports and manufacturing.
Non-oil exports are now expected to rise by as much as 4%, and January's manufacturing index hit its highest point in 10 months on demand for AI products and chips.
Even with US tariffs making trade tricky, Singapore is holding steady thanks to smart supply chain moves and global partners like the US, Germany, and Japan keeping their economies humming.