Key facts
- Singapore's economy grew 5.9% year-on-year in the second quarter of 2026.
- This growth rate exceeded the official advance estimate of 5.7%.
- The full-year growth forecast was upgraded to 4.5%-5.5% from 2.0%-4.0%.
- Non-oil domestic exports forecast was raised to 14%-16% from 3%-5%.
- AI-related demand and capital expenditure spending bolstered the global economy.
- The central bank tightened monetary policy in late July due to persistent inflationary risks.
Singapore's economy grew 5.9% in the second quarter of 2026 from a year earlier, surpassing the official advance estimate of 5.7%. For the first half of the year, GDP growth reached 6.1%. The Trade Ministry upgraded its forecast for this year's growth to 4.5%-5.5%, from 2.0%-4.0%, citing the resilience of the global economy, bolstered by sustained AI-related demand and capital expenditure spending. The impact of the Middle East war was less severe than initially feared, while the global AI investment boom was stronger than expected.
On a quarterly basis, gross domestic product expanded by 1.4% in the April-June period, compared with an advance estimate of 1.1% growth. Enterprise Singapore upgraded its forecast for growth in non-oil domestic exports to 14%-16%, from 3%-5% previously.
The Monetary Authority of Singapore expects growth to remain firm for the rest of 2026, though it has flagged the sustainability of the AI investment boom as a major risk. The central bank unexpectedly tightened monetary policy in late July, citing persistent inflationary risks as the Middle East conflict keeps energy cost pressures elevated. The government also announced a S$900 million support package to help households and businesses cope with high energy prices.