Singapore raises 2026 growth forecast to 4.5-5.5%; Q2 growth revised up to 5.9%
The economy expands 6.1% year on year in the first-half of 2026
Singapore has raised its economic growth forecast for 2026 to a range of 4.5 to 5.5 percent, up from the previous forecast of 2 to 4 percent. The Ministry of Trade and Industry (MTI) announced the revised forecast on Tuesday, citing an accelerating global boom in artificial intelligence investment as the main driver behind the increased outlook.
The government's revised figure for Q2 growth in 2026 stands at 5.9 percent, an upward revision from the advance estimate of 5.7 percent. This growth was primarily driven by sectors such as manufacturing, wholesale trade, and finance and insurance. The final Q2 figure marks a 0.2 percentage point upgrade, reflecting stronger output in these industries once more complete survey data was taken into account.
The improved economic outlook is underpinned by two global factors: the less severe fallout from the US-Israel-Iran conflict than initially feared, and a stronger global AI investment boom than expected, which has provided significant tailwinds to AI-related production and exports worldwide.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
