Home / Business and Economy / Singapore Economy Surges Past Projections
Singapore Economy Surges Past Projections
14 Jul
Summary
- Economy grew 5.7% in Q2, surpassing market forecasts.
- Manufacturing sector drove expansion, services saw a slowdown.
- Full-year inflation projected at 1.5%-2.5%.
Singapore's economy achieved a notable 5.7% expansion in the second quarter of 2026, surpassing the 5.5% forecast by Reuters economists. This performance was a slight decrease from the revised 6.3% growth recorded in the first quarter.
The primary driver for this recent economic uplift was the nation's manufacturing sector. Despite this strength, a deceleration in services growth acted as a counteracting force.
Inflation in Singapore held steady at 1.8% in May 2026, marking its joint-highest point since September 2024. The Monetary Authority of Singapore anticipates full-year inflation to range between 1.5% and 2.5%.
Looking ahead, Singapore's Ministry of Trade and Industry projected GDP growth for 2026 to be between 2% and 4%. However, the ministry cautioned that downside risks have significantly increased due to the ongoing US-Israel-Iran conflict.
The central bank, the Monetary Authority of Singapore (MAS), will announce its quarterly monetary policy decision later this month. MAS manages policy by influencing the Singapore dollar's nominal effective exchange rate (S$NEER) within an undisclosed trading band, rather than using interest rates.
