Singapore growth to stay firm, but AI boost to moderate in 2027: MAS
Core inflation is expected to ease from mid-2027
Singapore's economy is projected to maintain steady growth in 2027, according to the Monetary Authority of Singapore (MAS). However, the pace of artificial intelligence (AI)-related activity is expected to moderate in the latter half of the year. The strong demand for AI products and increased production capacity are anticipated to sustain growth in the technology-related sectors.
The central bank kept its nominal effective exchange rate policy settings unchanged after two consecutive tightening measures earlier in the year. Core inflation is expected to ease more noticeably from the middle of 2027, although there are still risks of upward pressure. Inflation could rise further due to disruptions in the Middle East or adverse weather conditions impacting food prices.
Singapore's economy is expanding at an above-trend pace, with technology sectors driving GDP growth in the third quarter. AI-related activity is projected to remain robust through 2027, supported by global AI investments. The risks of a downturn in the AI cycle are considered less immediate. MAS forecasts core inflation to remain slightly elevated in the immediate quarters, averaging 1.5 to 2.5% in 2027.
Global inflation is expected to gradually ease in 2027 as higher energy costs trickle down to consumers.
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.
Also reported by 1 other outlet
- Singapore’s AI-led economic growth set to continue in 2027: MAS channelnewsasia.com
