Singapore raises 2026 GDP growth forecast to 4.5%-5.5%; economy grew 5.9% in Q2
The Ministry of Trade and Industry said the outlook for the rest of the year has improved due to stronger AI-related spending and a less severe-than-feared impact from the Middle East conflict.
Singapore's Ministry of Trade and Industry has boosted the country's GDP growth forecast for 2026, citing a stronger-than-expected performance in the first half of the year and an optimistic outlook for the rest of the year. The economy grew by 5.9% in the second quarter of 2026, slightly above the initial estimate of 5.7%, but down from the 6.3% growth reported in the first quarter.
This improvement is attributed to stronger spending on artificial intelligence (AI) and a less severe impact from the Middle East conflict than initially feared. The manufacturing, wholesale trade, and finance and insurance sectors played significant roles in driving the growth, particularly through robust global demand for AI-related products and services.
However, the food and beverage services sector contracted due to increased local outbound travel and fewer visitor arrivals. Looking ahead, Singapore's external demand outlook has improved compared to May, with a stronger-than-expected AI investment boom supporting growth prospects. Meanwhile, the economic impact of the Middle East conflict and potential US tariffs may put upward pressure on global inflation, affecting economic activity in the region.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
Also reported by 3 other outlets
- Singapore raises 2026 GDP growth forecast to 4.5%-5.5%; economy grew 5.9% in Q2 channelnewsasia.com
- Singapore raises 2026 GDP forecast news.rthk.hk
- Singapore records 5.9% Q2 GDP growth, raises full-year forecast asia.nikkei.com