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 upgraded its economic growth forecast for 2026 to 4.5% to 5.5%, up from the previous forecast of 2% to 4%. The economy expanded by 5.9% in the second quarter of 2026, slightly higher than the initially estimated 5.7%. The growth improvement is attributed to stronger AI-related spending and a less severe impact from the Middle East conflict.
The manufacturing, wholesale trade, and finance and insurance sectors contributed to the growth, with AI demand boosting electronics and precision engineering, while banking segments saw strong credit growth. However, the food and beverage services sector contracted due to increased outbound travel and fewer visitor arrivals. Despite some concerns from the Middle East conflict and global inflation, Singapore's external demand outlook has improved.
The US, Eurozone, China, Taiwan, and South Korea are also expected to see varying growth rates in 2026.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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