Singapore's economy expands 5.7% in the second quarter, beating expectations

Singapore's economy expanded 5.7% in the second quarter, topping market expectations, on the back of strong growth in the manufacturing sector.

Growth was higher than the 5.5% expected by economists polled by Reuters, but lower than the revised 6.3% seen in the first quarter, according to a release from the country's Ministry of Trade and Industry .

The goods sector expanded 10.4% from the 8.4% in the previous quarter, while growth in the services sector slowed to 4.6% from 6.2% in the first quarter.

"Singapore's 2Q26 advance GDP estimates indicate that the economy remained resilient despite the shock stemming from tensions in the Middle East," said Chua Han Teng, senior economist at DBS Bank said in a note. He expects robust trade-related performance and tailwinds from domestic construction to continue into the next few quarters, but warned that GDP was likely to moderate going forward due to high base effects.