Singapore: Growth set to run above potential – UOB
UOB economist Jester Koh highlights that Singapore’s 2Q26 Gross Domestic Product (GDP) was revised up to 5.9% year-on-year and 1.4% quarter-on-quarter, driven by AI-related strength in manufacturing and modern services.
Singapore's Gross Domestic Product (GDP) for the second quarter of 2026 has been revised upwards to 5.9% year-on-year and 1.4% quarter-on-quarter, according to a report from UOB economist Jester Koh. The growth surge is attributed to the strength of the manufacturing sector, particularly in AI-related activities, as well as advancements in modern services.
The Monetary Authority of Singapore (MTI) has raised its 2026 GDP growth forecast to a range of 4.5%-5.5%, up from the previous 2.0%-4.0% range. UOB now projects a growth rate of 5.0% for the year, driven by capital expenditure in the AI sector and demand for finance-related credit. Despite potential challenges from reduced tourism, the AI-linked capital expenditure and strong performance in the finance sector are expected to propel Singapore's growth above potential, even in the second half of the year.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
