Singapore has projected that its economy will expand more rapidly than previously anticipated this year, amid resilient global trade activity. Final estimates released by the Ministry of Trade and Industry on Tuesday indicate that gross domestic product (GDP) in 2026 is expected to grow between 2% and 4%, up from an earlier forecast of 1% to 3%. The ministry noted that GDP in the final quarter of 2025 increased by 6.9% compared to the same period a year earlier. This figure surpassed the median economist estimate of 6.5% and was higher than the government's preliminary reading of 5.7%. According to the ministry, ongoing advancements in artificial intelligence, expansionary fiscal policies in several economies including the United States, Germany, and Japan, as well as accommodative global financial conditions, will support worldwide economic growth. GDP for the full year 2025 grew by 5%, exceeding the initial estimate of 4.8%. This marks the fastest growth rate since 2021, when post-pandemic pent-up demand drove economic expansion close to 10%. These figures highlight the strong resilience of Singapore's economy despite disruptions from U.S. tariffs, with the booming AI sector stimulating high-tech manufacturing and exports. Neighboring countries such as Vietnam and Malaysia have also largely remained unaffected by U.S. tariff increases, primarily due to rising demand for electronics. Singapore's Prime Minister Lawrence Wong is expected to announce the latest economic strategy on Thursday when he presents the 2026 budget.