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The Straits Times·3 min read·medium

Singapore’s 2026 growth forecast raised to 5 per cent

O
Ovais Subhani
Singapore’s 2026 growth forecast raised to 5 per cent
AI Summary

Private-sector economists have raised Singapore's 2026 GDP growth forecast to 5 percent, up from 3.5 percent. This upward revision is largely attributed to a strong performance in the manufacturing and export sectors driven by the global AI technology boom.

Why it matters

The forecast upgrade signals strong economic resilience and highlights the significant impact of the AI hardware cycle on trade-dependent economies.

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All economists in the survey identified a sustained AI-driven upturn in the technology cycle as a key support to Singapore’s economic outlook.

Listen Summarise Economists raised Singapore's 2026 GDP growth forecast to 5%, up from 3.5%, driven by strong export and manufacturing performance amid an AI-led technology surge. Key sector growth forecasts increased, including manufacturing (8.4%), finance (5.4%), construction (7.1%), and wholesale and retail trade (7.4%), while accommodation and food services were downgraded. Inflation forecasts eased slightly to 2.1% overall and 1.9% core inflation; unemployment is expected to stay at 2.1%, with 45% of economists predicting MAS monetary tightening in October. AI generated

SINGAPORE – Private-sector economists have bumped up their 2026 growth forecast for Singapore’s economy to 5 per cent, up from 3.5 per cent, following a surprise surge in exports and manufacturing output in the first half of the year.

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