Singapore's average annual economic growth is expected to stabilize at around 2.7% from 2026 to 2035, according to the latest Southeast Asia Outlook report published Wednesday by DBS Group, Bain & Co., and Vriens & Partners.

The projection marks a continued deceleration for what the report described as a "mature economy," slowing from an average annual growth rate of 3.5% between 2016 and 2025, and 5.7% between 2006 and 2015.

The forecast for the city-state also lags behind the broader 4.8% growth outlook for the region's six major economies, which include Indonesia, Malaysia, the Philippines, Thailand and Vietnam, for the 2026 to 2035 period.

To offset demographic constraints, Singapore will likely leverage AI-driven productivity gains, the report said.