•Singapore raises its 2026 economic growth forecast to 2-4% from 1-3%, driven by strong AI-related product demand.
•The Trade Ministry cites robust performance in Q4 2025, with 5% growth contributing to an estimated 4.8% annual growth.
•Global trade remained resilient despite US tariffs, with effective rates lower than announced and countries adjusting through trade diversion.
•Singapore, a key electronics hub, sees increased production of semiconductors, memory chips, and server components for AI data centers.
•Sustained AI investment, expansionary fiscal policies in the US, Germany, and Japan, and accommodative financial conditions are expected to support global growth.
