Singapore's upgraded economic outlook a 'bullish signal' of AI-driven expansion, but other sectors also contributing: Experts
Several economists upgraded their growth forecasts for Singapore following a strong showing in the second quarter.
Singapore has raised its GDP forecast for 2026 to 4.5% to 5.5%, signaling confidence in artificial intelligence-related growth, but economists stress that other sectors also contribute to the economy. The Ministry of Trade and Industry (MTI) highlighted better-than-expected performance in the first half of the year and anticipated acceleration in global AI-related capital expenditure.
OCBC's chief economist Selena Ling noted that the AI boom is a significant growth driver, but Singapore is not overly reliant on it. Economists also pointed out that sectors like construction, finance, insurance, and information and communications are growing steadily. However, some sectors are facing challenges due to supply disruptions from the Middle East conflict, including the chemicals cluster of the manufacturing sector, which is expected to remain adversely affected.
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.
