Singapore Q3 GDP beats forecasts at 5.4% as growth cools from Q2

Singapore's economy expanded by 5.4% year-on-year in the third quarter of 2026, surpassing market expectations of 5.0% growth, though it was lower than the 1.1% increase seen in the previous quarter. The broader economy's performance followed a robust first half, bolstered by artificial intelligence-related industries and exports.

Monetary Authority of Singapore (MAS) maintained its monetary policy stance, pausing two consecutive rate hikes in April and July due to inflation concerns stemming from higher energy costs. The authority left room for potential further tightening, projecting 1.5%-2.5% headline and core inflation for 2026 and 2027, respectively.

Despite a softer inflation outlook, the Singapore dollar remained relatively stable against the US dollar, and the FTSE Straits Times Singapore index saw a 0.3% rise.