Singapore’s economy grew 6.0% year-on-year in Q1 2026, beating an advance estimate of 4.6%, and expanded 1.0% quarter-on-quarter (seasonally adjusted) instead of the earlier projected 0.3% contraction. Growth was driven by wholesale trade, manufacturing and finance and insurance, supported by strong AI-related demand; non-oil domestic exports rose 9.6%, led by a 57.8% jump in electronics. MTI kept its 2026 GDP forecast at 2.0–4.0% but said the outlook has weakened and downside risks have risen due to the Middle East conflict. The conflict has disrupted global growth and inflation paths and increased volatility in energy prices and supply chains; the central bank tightened policy in April and says its current stance remains appropriate. Enterprise Singapore raised its export growth forecast to 3.0–5.0% on resilient AI demand, though U.S. trade tariff risks persist. April inflation data is due, with the central bank having already lifted its 2026 inflation forecasts to 1.5–2.5%.
Q1- Singapore Economy Beats Expectations
