Singapore: AI-driven growth supports MAS outlook – Standard Chartered

Standard Chartered Bank economists Edward Lee and Jonathan Koh report that Singapore's H1 GDP expanded 6.1% year-on-year, driven by strong AI-related demand. This growth offset the negative impact on the energy sector. The government has raised its 2026 growth forecast to 4.5-5.5% from the previous 2-4%. For H2-2026, they expect more moderate growth due to electronics base effects.

Standard Chartered has also increased its own 2026 GDP forecast to 4.9% from 3.9%. The bank attributes the H1 growth mainly to AI-related demand, while oil-related drag had less of an impact than anticipated. Private investment in machinery and equipment contributed 1 percentage point to H1 GDP growth. Exports increased at a double-digit pace, although higher imports slightly reduced the net export contribution in Q2.