SINGAPORE - Singapore's economy is projected to grow between 1 percent and 3 percent in 2025, while inflation is expected to average 1.5 percent to 2.5 percent, Prime Minister Lawrence Wong announced on Tuesday as he delivered the country's 2025 Budget in the parliament.

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Wong, who also serves as finance minister, said that Singapore faces greater global uncertainty and downside risks in the next phase of growth. He noted that global pressures would weigh on economic prospects, and as a small and open economy, Singapore would feel the impact, leading to a more moderate outlook for 2025.

The growth forecast aligns with the Ministry of Trade and Industry's earlier projections.

READ MORE: Advance estimates put Singapore's 2024 growth at 4%

In 2024, Singapore's economy expanded by 4.4 percent, accelerating from the 1.8 percent growth recorded in 2023, according to data released by the Ministry of Trade and Industry on Friday.