Economists raise Singapore 2026 growth forecast to 5%; more see AI bubble as a top risk
45% of respondents in latest MAS survey see tightening of Sing$ band in October, up from 30% previously
Singapore's economy is expected to grow by 5 percent in 2026, up from a previous forecast of 3.5 percent, according to private-sector economists. The Monetary Authority of Singapore's latest quarterly survey of professional forecasters highlights this upgrade, which brings the median forecast close to the upper end of the official range of 4.5 to 5.5 percent.
Despite this positive outlook, most respondents anticipate no immediate changes to monetary policy, although expectations of tightening have shifted. Singapore's economy experienced robust growth in the first half of 2026, expanding by 5.9 percent in the second quarter and 6.3 percent in the first quarter, surpassing previous expectations.
Economists predict continued strong growth in manufacturing, finance and insurance, construction, and wholesale and retail trade sectors. Inflation is expected to ease, with headline inflation projected at 2.1 percent and core inflation at 1.9 percent for 2026, both within the authorities' forecast range. The main downside risks cited by economists include a prolonged or escalating conflict in the Middle East and the bursting of the artificial intelligence bubble.
Meanwhile, a sustained AI-driven upturn in the tech cycle is identified as the top upside risk, with all respondents agreeing on this point.
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.
