Singapore's pharmaceutical and electronics manufacturing sectors provided momentum for economic growth in the fourth quarter, with the full-year growth rate reaching its fastest pace since the post-pandemic recovery, weathering the impact of tariffs from the Trump administration in the United States.

Preliminary data released by Singapore's Ministry of Trade and Industry showed that fourth-quarter gross domestic product grew 5.7% year-on-year, falling short of the median estimate of 6.3% from a media survey but exceeding the 4.3% growth rate recorded in the third quarter.

By sector, manufacturing grew 15% year-on-year, benefiting from strong performance in the pharmaceutical industry and rising demand for semiconductors, servers, and related products associated with artificial intelligence.

The impact of Trump's tariff measures on trade-dependent Singapore proved weaker than anticipated, with exports demonstrating resilience, while a recovery in the construction sector also bolstered domestic economic activity.

Singapore's Prime Minister Lawrence Wong stated in a New Year's address on Wednesday, "We must be realistic: sustaining this pace of growth will be challenging. We will encounter more obstacles to growth, and inflationary pressures could also intensify."

Singapore's Ministry of Trade and Industry predicted in November that economic growth could slow to a range of 1% to 3% in 2026.