Singapore’s economy grows more than 5 percent amid AI boom
Summary
Singapore’s economy grew 5.4% in the latest quarter, driven by a boom in artificial intelligence (AI) and the semiconductor industry. Manufacturing and construction expanded strongly, but the central bank expects AI-driven growth to slow by 2027.Key Facts
- Singapore’s GDP grew 5.4% year-on-year between July and September 2025.
- Growth was driven by the semiconductor industry, manufacturing, and AI-related investments like data centers.
- Manufacturing output rose 7.5%, led by electronics, precision engineering, and transport engineering.
- Construction grew 8.8%, partly due to AI-related projects.
- The Monetary Authority of Singapore kept monetary policy unchanged, expecting AI demand to cool in 2027.
- Singapore produces about 10% of the world’s semiconductors and 20% of semiconductor equipment.
- The IMF forecasts Singapore’s economy to grow 5% in 2026, one of the fastest rates among advanced economies.
- Singapore’s economy has seen over 5% growth for two years in a row, a first since 2010 and 2011.
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