Singapore has sharply raised its 2026 economic growth forecast, pointing to a stronger-than-expected first half, gains from AI-related sectors and resilient exports.
The Ministry of Trade and Industry (MTI) said GDP growth for 2026 is now expected at 4.5% to 5.5%, more than double the lower end of its previous forecast of 2%-4%. It marks the second upgrade to Singapore's growth estimates this year; at the start of the year, MTI had projected growth of 1%-3%.
MTI also noted that the economic impact of the U.S.-Iran conflict has been less severe than initially feared. The drawdown of oil inventories and substitution to alternative energy sources have capped the rise in global energy prices, the ministry said.
The announcement coincided with revised second-quarter growth figures, with Singapore's economy expanding 5.9%, up from the 5.7% advance estimate. MTI attributed the second-quarter performance mainly to the manufacturing, wholesale trade, and finance and insurance sectors.
