Singapore Economy Slows, Beats Expectations

Singapore's economic expansion moderated in the third quarter of 2026, with Gross Domestic Product (GDP) growth slowing to 5.4%. This figure, however, exceeded the 5% growth anticipated by economists polled by Reuters. The prior quarter had seen Singapore's economy achieve a four-year high, fueled by AI-related sectors and exports.

For the full year 2026, the country is maintaining its economic growth forecast at 4.5% to 5.5%. This projection represents more than double the lower end of its previous estimate, signaling sustained economic strength. Earlier in the year, the ministry of trade and industry had projected growth between 1% and 3%.

In parallel, the Monetary Authority of Singapore has held its monetary policy steady, pausing after two consecutive rounds of tightening. These policy adjustments in April and July were implemented in response to inflation risks stemming from elevated energy prices. Singapore manages its currency against a basket of its trading partners' currencies rather than using interest rates.