Singapore’s AI-led economic growth set to continue in 2027: MAS
Activity in technology-related sectors is expected to moderate next year, but should remain a principal driver of economic growth, said the central bank on Wednesday (Oct 14).
The Monetary Authority of Singapore (MAS) anticipates that Singapore's economy will continue to grow through artificial intelligence (AI) expansion in 2027, although growth may slow down compared to the previous year. While technology-related sectors are expected to moderate, they will still drive the majority of economic growth, accounting for around 75% of overall growth.
Strong order backlogs and capacity expansions in AI-related production are projected to support this growth. The central bank also notes that significant capacity additions are expected in 2027 and 2028, which could further boost output. Additionally, sustained business and investor confidence could support other sectors of the economy, such as financial intermediation and trading activity.
The report also highlights that labor demand will be supported by construction and domestic-oriented services, while inflation is expected to ease gradually in 2027 due to normalizing oil and gas flows and increasing food inventories.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Singapore growth to stay firm, but AI boost to moderate in 2027: MAS businesstimes.com.sg
- Singapore’s AI-led economic growth set to continue in 2027: MAS channelnewsasia.com
