Singapore’s key exports rise 27.4% in Q2 as AI lifts electronics shipments

Singapore's non-oil domestic exports (NODX) surged 27.4 percent in the second quarter of 2026, according to Enterprise Singapore's latest figures. This marked a significant increase from the 9.6 percent growth witnessed in the first quarter of the year. The sharp rise in NODX is largely attributed to the surging demand for electronics, particularly those supporting the global AI infrastructure build-out.

In the April-June period alone, electronics shipments jumped by an impressive 88.1 percent year-on-year. This growth was driven by a 91.9 percent surge in the shipment of integrated circuits, or semiconductors, and a massive 182.5 percent increase in disk media exports. The surge in demand for semiconductors and electronic devices needed to power AI workloads at data centers worldwide has driven economic growth across Asia, including Singapore.

The strength of this export demand has also pushed Singapore's manufacturing output to new heights, contributing to an average economic growth rate of 6.1 percent in the first six months of 2026. This performance has led the Ministry of Trade and Industry (MTI) to upgrade its GDP growth forecast for 2026, projecting a growth range of 4.5 percent to 5.5 percent, up from earlier estimates of 2 to 4 percent.

However, the MTI has expressed concerns about the potential impact of financial market volatility on AI infrastructure spending. A survey of private forecasters in June indicated that 60 percent of respondents were concerned about an AI bubble burst as a downside risk to the economy, with 15 percent citing it as their top concern.