Singapore GDP to overtake Hong Kong by 2025

Singapore's nominal GDP will almost double to US$504b.

Asia's economy will continue to play an increasingly important role over the next decade as its share of global GDP rises from 33% in 2015 to 38% by 2025 according to BMI. This will be led in part by strong growth in emerging and frontier markets such as India, Indonesia, the Philippines, Vietnam and Bangladesh. 

While financial hubs such as Hong Kong and Singapore will see their share of regional GDP shrink on the back of their lower growth rates, they will nonetheless remain important markets given their high levels of GDP per capita.

With many emerging and frontier markets growing rapidly in size, some of the more developed but slower-growing economies will fall in terms of their relative size. Financial hubs such as Hong Kong and Singapore will both move downwards, with Singapore falling two places to become the 14th largest economy in the region and Hong Kong falling a further, by six places, to be the 15th largest economy.

"Importantly, our forecasts show that Singapore will grow to become larger than Hong Kong by 2020. Despite their decline in relative size over the coming years, at approximately USD500b in 2025, their economies will offer substantial opportunities for investors and will continue to boast some of the highest levels of GDP per capita in the region," BMI said.