Singapore economists see 2026 growth at 5%, says central bank survey

A recent survey conducted by Singapore's central bank reveals economists' optimistic growth outlook for the country in 2026, according to a report by Reuters. Among the surveyed 25 economists and analysts, half cited the prolonged or escalating conflict in the Middle East as a major downside risk for Singapore. Additionally, 29.4% of respondents flagged the potential bursting of the AI bubble as a concern.

The median forecast for growth this year has been upgraded to 5% from 3.5% in the previous survey conducted in June, with growth expected to reach 3.1% in 2027, up from 2.5%. Singapore's economy experienced a growth rate of 5.9% in the second quarter, surpassing expectations. In August, the trade ministry adjusted its growth forecast for 2026 to a range of 4.5% to 5.5% from the earlier estimate of 2.0% to 4.0%.

The economists' inflation forecasts for 2026 stood at 1.9% for core inflation and 2.1% for headline inflation, both lower than the previously projected 2% and 2.3%, respectively. In July, inflation rose by 2.0% compared to the previous year. The central bank has cautioned that elevated inflation is expected to persist through the first half of next year.